As Asia contributes 90 percent of the world’s growing oil demand over the next five years, regional partnerships are being formed. India and Malaysia are the latest in a series of forge links to ensure future energy in Southeast Asia. Malaysia’s state-owned Petronas, in partnership with the Indian Oil Corporation (IOC), is expanding its role as an LPG exporter to build liquefied natural gas (LNG) terminals and expand oil retail and gas distribution. He also hopes that the company will help transform India’s oil refining industry beyond national players. IndianOil Petronas Private Ltd. owns 50% of each state-owned company. , Or IPP. IPP protects retail transportation, including oil and gasoline as well as urban gas supply.
Currently, national refineries dominate the market, and international gas stations such as Royal Dutch play a small role in the Indian retail market. Petronas’ entry into the market as India seeks to boost the region’s energy ties will trigger more competition with national players.
IOC plans Invest $ 13.49 billion According to the company’s chairman, Madhav Vadia, to increase its refining capacity by 25 million tons a year over the next two to five years. The strategy was presented at the IOC’s annual shareholders’ meeting last Friday.
Currently, the country’s largest refinery, the IOC, has operated 11 refineries and converted crude oil to 81.2 million tons. The company currently plans to increase the capacity of several filters in Guyana, including Koiali, Panipat, Haryana, and Guhati and Baruni filters.
With India’s oil demand declining for the first time in more than a decade in 2020, the response to the Covand-19 epidemic is light and the prospects for 2021 are promising as the demand for energy exceeds the pre-epidemic levels. In addition, as countries across Europe and North America seek to gradually move away from fossil fuels, India plans to continue to develop the industry as long as it needs it, relying on oil and gas.
Related: Oil congestion is worsening in Asia As India’s population grows and the economy expands, India’s oil demand may be above average on average. 200,000 bpd in the coming years. India’s refining capacity is estimated at 250 million MT per year. By 2025, 300 million Mt. And by 2030, 445 million m.
That does not completely ignore the role of alternative energy production in the Indian market. Petronas not only hopes to play a role in India’s ever-expanding oil industry, but also seeks to establish a reputation as a clean energy producer. The IOC has previously announced plans to expand operations to include petrochemical chemicals, hydrogen and electrical mobility. Establishing regional partnerships with companies with experience in clean energy projects will help the IOC grow faster in this field.
Petronas already operates a power plant in India. A.D. In 2019, Amplus Energy found solutions, with solar building companies offering solar panels installed throughout India’s roofs and floors. M + in Petrona. Petronas currently has experience in the Malaysian, Indian and Dubai solar markets, currently producing 1 GW of solar power in India alone.
IOC Explained “Indian oil is naming itself a ready-made global energy giant and we are working on renewable energy options to make that vision a reality.” Vidia also highlighted the company’s interest in developing CNG and LNG fuels for vehicles, hydrogen-powered CNG, long-distance buses, biofuels, hydrogen and e-mobility solutions.
The company has established other regional partners in the field of renewable energy in the production of aluminum-air batteries for the EV market in India.
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In July, the IOC announced plans to build India’s first green hydrogen plant at a 160,000 bpd Mathura refinery in northern India. The plant uses wind energy for hydrogen production Government’s goal to reduce carbon emissions In line with international expectations.
However, oil and gas will continue to be the leading sources of energy for most Indian households and businesses over the next decade, with renewables playing a secondary role in the short term.
India’s growing long-term goal of mobilizing local and foreign experts to increase the country’s clean energy capacity in collaboration with regional players to boost the country’s oil and gas industry development and competition is not just about increasing the demand for traditional energy. In the coming decades, however, it will help boost India’s reputation as a major global power.
At Felicity Bradstock for Oilprice.com
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