India is poised to account for 35% of the growth in global energy demand in the coming decades

India will drive up to 35 percent of global energy demand growth over the next 20 years, Oil Minister Hardeep Puri said at the Gastech conference that began in Houston on Tuesday.

“If you say global demand increases by one percent, ours increases by three times,” Puri said. “Over the next two decades, 35% of global demand growth will come from India.”

At the same time, the official said that India also wants to succeed in the energy transition. “We will manage and succeed … in the green transition,” Puri said. “That’s the part I’m most pleased with.”

India is already one of the biggest drivers of energy demand growth and a major energy importer. Earlier this year, the US Energy Information Administration forecast that the country’s industrial expansion and energy demand will lead to a threefold increase in demand for natural gas.

In 2022, India’s natural gas consumption will reach 7.0 billion cubic meters per day, with more than 70% of demand coming from the industrial sector. By 2050, India’s natural gas consumption is set to triple to 23.2 Bcf/d, according to EIA estimates.

Demand for oil on the subcontinent is also on the rise, prompting plans to significantly increase refining capacity. Late last year, the country’s oil ministry announced plans to expand refining capacity by 1.12 million bpd each year until 2028.

India’s total refining capacity is expected to grow by 22% in five years from the current 254 million metric tons per year, which is equal to about 5.8 million bpd, according to these plans.

Still, India is keen to participate in the energy transition. It already has ambitious targets, with 500 gigawatts of renewable energy capacity installed by 2030, up from about 153 GW of capacity now.

Earlier this month, Renewable Energy Minister Pralhad Joshi said a number of banks had pledged a total of $386 billion in investment commitments to help India boost its renewable energy industry.

By Charles Kennedy for Oilprice.com

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