New Delhi, Dec 10 || India is expected to be the key destination for global oil and gas products as the country adds refinery, petrochem, LNG regasification and pipeline capacity while the Chinese economy slows, according to an HSBC report released on Tuesday.
The report states that global oil prices are likely to remain weak. This would benefit India as the country imports over 80 per cent of its crude oil requirement and any decline in global oil prices leads to a huge saving in the import bill.
"For India's oil and production, we expect another year of marginal growth but it is all contingent on ONGC's ability to deliver on-schedule production and minimise the decline in nomination blocks. CY25 will also see at least 25 per cent growth in LNG regasification capacity which will further enhance India's capacity to absorb global LNG. On the refining side, India is expected to increase its capacity by 9 per cent, adding 0.5 million barrels per day,” the HSBC report states.
It further points out that energy transition in the country will pick up as well. "We also expect India’s oil and gas companies to start their investment phase in energy transition led by renewables, early stage green hydrogen blending and investment preparation for green hydrogen. We also expect the start of refinery transformation projects to orient towards petrochemicals," the report observes.