MOSCOW (MRC) -- India would be one of the countries most exposed if Russia refuses to sell crude oil at the capped price under proposed sanctions to be imposed by the United States and the European Union, said Reuters.
In 2021, India was the world’s third-largest crude importer (214 MMt) after China (526 MMt) and the United States (305 MMt) (“Statistical review of world energy”, BP, 2022).
India and China rely on imports by tanker from the Middle East, Russia and other regions, in contrast to the United States, which receives most of its imports by pipeline from neighboring Canada.
India’s domestic crude and condensate production has been stuck at 30-40 MMt per year for the last two decades, data from India’s Ministry of Petroleum and Natural Gas shows.
By contrast, domestic petroleum consumption has doubled to 202 MMt in 2021 from 103 MMt in 2002 (“Snapshot of India’s oil and gas data”, Petroleum Planning and Analysis Cell, Nov. 10).
In the first ten months of 2022, India consumed a seasonal record 182 MMt, surpassing the previous peak of 178 million in 2019, before the pandemic.
As a lower-middle income country experiencing rapid industrialization and urbanization, India’s consumption is growing fast but its consumers are very sensitive to both price changes and the economic cycle.
Consumption has been growing by around 7% per year in the last 12 months, though there were signs of a possible slowdown to around half that rate in October.
We remind, India’s Petronet LNG plans to set up a greenfield petrochemical complex consisting of a 750,000 tonnes/year propane dehydrogenation unit (PDH), a 500,000 tonnes/year polypropylene line (PP) and other facilities for the import, storage and transfer of ethane and propane at Dahej, in western Gujarat state, said the company.
The project is estimated to cost around Indian Rupees (Rs) 142bn (USD1.74bn).