India poised to emerge as global oil refining and energy hub: Hardeep Puri

Hyderabad, Oct 28 (IANS) Petroleum Minister Hardeep Singh Puri said on Tuesday that India’s oil refining capacity currently stands at about 258 million metric tonnes per annum (MMTPA) and is on track to reach around 310 MMTPA by 2030, with long-term plans to scale further to 400-450 MMTPA to become a global refining and energy hub.

Addressing the inaugural session of the Energy Technology Meet here, the minister said this expansion will consolidate India’s position among the top three refining hubs globally, as around 20 per cent of existing global refining capacity faces potential closure by 2035, with over 100 refineries expected to shut down worldwide.

While the global energy market is expected to grow at a slow pace, India stands out as a bright spot, projected to contribute nearly 30-33 per cent of global energy demand growth in the coming decades, he added.

Puri also observed that India’s refineries are world-class, globally integrated, and export-ready. India is already the fourth-largest refining nation and among the top seven exporters of petroleum products, exporting to more than 50 countries worth over $45 billion in FY 2024-25.

The Minister underlined the importance of innovation and indigenisation in India’s energy ecosystem, with the country achieving nearly 80 per cent import substitution across the energy value chain.

Puri further noted that India’s progress in green hydrogen has been particularly promising. Recent tenders by Indian Oil and Hindustan Petroleum have reduced the price of green hydrogen from around $5.5/kg to nearly $4/kg, marking a major step toward commercial viability.

He said that green hydrogen, natural gas, and biofuels will be central to India’s energy transition, with the Global Biofuels Alliance expected to catalyse international trade and adoption of biofuels, including Sustainable Aviation Fuel.

The minister stressed that India’s energy strategy encompasses both fuel and petrochemical growth as part of a calibrated transition towards sustainability. He said that while the share of traditional fuels will gradually reduce, they will continue to play a major role for decades as India moves towards its 2047 goals.

Simultaneously, the share of natural gas in the energy mix is being raised from 6 per cent to 15 per cent, green hydrogen is being scaled up, and renewables are expanding rapidly—all underlining India’s commitment to meeting its climate goals without compromising energy security.

The Minister said that post-2014 reforms and ecosystem strengthening have unlocked a new era of growth and innovation. He highlighted ongoing projects such as the Barmer Refinery and Andhra Refinery as key examples of the sector’s forward momentum.

With over 100 biogas plants operational and 70 more in the pipeline, he said that India is building an ecosystem that connects technology, investment, and sustainability.

Puri concluded that as India advances towards becoming a $10 trillion economy, its energy sector will not only meet domestic requirements but also serve global markets.

The Minister expressed confidence that by 2035, India will move from being the world’s fourth-largest to possibly the second-largest refining power.

He emphasised that India’s young demography, rising energy demand, and proactive policy environment will ensure that the country not only participates in but actively shapes the global energy future.

--IANS

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