India Charts Bold Energy Future: Refining Expansion, Green Fuel & Global Role

India's petroleum and energy sector is poised for a transformative leap, emerging as a global energy growth engine with a strong emphasis on refining capacity expansion, green fuels, and policy-driven innovation. This was the resounding message delivered by Union Minister for Petroleum and Natural Gas, Shri Hardeep Singh Puri, at the inaugural session of the Energy Technology Meet held in Hyderabad.

India: The Global Energy Demand Engine

In a world where several traditional energy hubs are slowing down, India is bucking the trend. Shri Puri revealed that India is expected to account for nearly 30–33% of the global energy demand growth in the coming decades. This projection places India at the heart of global energy dynamics, driven by rapid urbanization, industrialization, and a rising middle class.

While global refineries face closures—over 100 refineries globally may shut down by 2035—India's refining capacity is set to rise from the current 258 million metric tonnes per annum (MMTPA) to 310 MMTPA by 2030, and further to 400–450 MMTPA in the longer term. This would cement India's status among the top three global refining hubs.

Refining & Export Powerhouse

India is already the world's fourth-largest refining nation, and with exports of petroleum products to more than 50 countries, it ranks among the top seven petroleum exporters globally, exporting petroleum products worth over USD 45 billion in FY 2024–25. The refining sector contributes nearly 20% of India's national revenue, underlining its strategic economic significance.

Domestic consumption of petroleum products has also grown robustly, from 5 million barrels per day (bpd) in 2021 to 5.6 million bpd in 2025, with forecasts suggesting it will soon touch 6 million bpd—driven by economic momentum and rising per capita income.

Petrochemicals Integration: Unlocking Value

One of the key strategic shifts highlighted was the integration of petrochemicals with refining operations. Shri Puri noted that India's petrochemical utilization currently stands at just one-third of the global average, offering enormous untapped potential.

The petrochemical intensity index—a metric that reflects the amount of petrochemicals used per barrel of crude—has already improved from 7.7% to 13%, and upcoming refinery projects are being designed as integrated petrochemical complexes, aimed at enhancing value addition, process efficiency, and global competitiveness.

Biofuels and Ethanol: Accelerated Milestones

India's rapid strides in ethanol blending and biofuels were also spotlighted. From a modest 5% blending target in 2006, the country achieved 10% ethanol blending in 2022—five months ahead of schedule. Encouraged by this success, the government preponed the 20% blending target from 2030 to 2025–26.

Such achievements are rooted in policy clarity, institutional support, and close coordination with the sugar, agriculture, and oil sectors. These efforts are now being further expanded to include Sustainable Aviation Fuel (SAF) and international cooperation through the Global Biofuels Alliance.

Green Hydrogen & Natural Gas: Transition Pillars

India's green energy revolution is also gaining momentum, with green hydrogen at the forefront. Shri Puri highlighted recent IOCL and HPCL tenders that have reduced the cost of green hydrogen from around USD 5.5/kg to nearly USD 4/kg, taking it closer to commercial viability.

Natural gas is also being promoted as a bridge fuel. India aims to increase the share of natural gas in its energy mix from 6% to 15%, supported by infrastructure upgrades and cross-border pipelines.

Innovation, Atmanirbharata, and Industrial R&D

India's energy transition is not just about fuels—it's also about innovation and self-reliance. The country has achieved 80% import substitution across the energy value chain. Although critical components such as catalysts and specialized equipment still depend on imports, the government is pushing for domestic capability through:

• The Production Linked Incentive (PLI) scheme for energy technologies

• Establishment of a National Centre for Catalyst Research

• Enhanced public-private R&D partnerships

Shri Puri emphasized that Atmanirbhar Bharat in energy does not mean complete insulation from the global market, but rather developing globally competitive capabilities while ensuring domestic security.

From Digboi to Barmer: A Legacy of Leadership

The Minister recalled India's refining journey that began at Digboi in 1901, and how recent post-2014 reforms have propelled the sector into a new growth orbit. He cited mega infrastructure projects like:

• The Barmer Refinery in Rajasthan

• The Andhra Refinery project

• Expansion of bio-CNG and biogas plants—with 100 plants already operational and 70 more in the pipeline

Balancing Energy Security with Climate Goals

Shri Puri reiterated that India's approach is calibrated, balanced, and pragmatic. While renewable and green energy adoption is accelerating, fossil fuels will continue to play a vital role in the coming decades. India's energy strategy focuses on simultaneous growth in:

• Fuel security

• Petrochemical self-reliance

• Clean energy technology

• Climate-aligned development

This balanced roadmap ensures energy access, affordability, and reliability, even as the country works toward its net-zero goals and Vision 2047 objectives.

India: From Consumer to Global Supplier

As India marches toward becoming a USD 10 trillion economy, its energy sector is evolving from being a passive consumer to an active global energy supplier and influencer. Shri Puri expressed confidence that by 2035, India could become the world's second-largest refining power, leveraging its youthful workforce, policy reforms, and rising energy demand.

India's energy transformation is not just about numbers—it is about reshaping global narratives. By integrating innovation, investment, sustainability, and self-reliance, the country is preparing to lead the global energy transition, ensuring that its growth journey is powered by resilience, responsibility, and renewable ambition.