Oil and gas - #SectorUpdates
India is the 3rd largest energy and oil consumer and 4th largest importer of liquefied natural gas (LNG) in the world exhibiting the fastest-growing energy market in the world. The oil and gas sector plays a major role in influencing the decision-making for all the other important sections of the economy. India’s oil refining capacity stood at 248.9 MMT per annum, making it the second-largest refiner in Asia. India is expected to be one of the largest contributors to non-OECD petroleum consumption growth globally. India’s LNG import stood at 2,451 million metric standard cubic meters (MMSCM) and gross production of LNG was 2,813 MMSCM in 2022. According to market reports, consumption of natural gas in India is expected to grow by 25 BCM, with annual growth of 9% by 2024. In May 2022, ONGC announced plans to invest US$ 4 billion from FY22-25 to increase its exploration efforts in India. The oil and gas sector contributes 0.66% to the Indian GDP. A policy to provide Purchase Preference linked with Local Content (PP-LC) under the Ministry of Petroleum & Natural Gas was approved by the Government of India under its Make in India initiative aiming to incentivize the growth in local content in goods and services by implementing oil and gas projects in India by providing purchase preference to the manufacturers who meet the local content targets in oil and gas business activities.