According to the Petroleum Planning and Analysis Cell’s (PPAC) Ready Reckoner report, India’s crude oil production for the fiscal year 2023-24 is projected to remain stable at 29.4 million metric tons.
The consumption of petroleum products is anticipated to increase to 233.3 million metric tons, up from 223.0 million metric tons the previous year, indicating a steady rise in domestic demand.
India’s refining capacity is expected to grow from 266.5 million metric tons in the last fiscal year to 276.1 million metric tons by the end of 2024. The expansion aligns with India’s strategic objectives to enhance its refining capabilities to meet domestic and international oil demands.
Significant progress has been made in oil exploration through the Open Acreage Licensing Policy (OALP), with the eighth bidding round adding 34,364.53 square kilometers to India’s exploration area, bringing the total to 2,42,055 square kilometers. The expansion aims to accelerate exploration and production activities across the country and reduce reliance on imported oil.
In the natural gas sector, production is expected to rise from 33.664 billion cubic meters in 2022-23 to 35.717 billion cubic meters in 2023-24. Improvements in natural gas infrastructure, including more pipeline connections and an increase in Compressed Natural Gas (CNG) stations, support the country’s push towards a gas-based economy.
As reported by ETEnergyworld.com, the government is focused on increasing the share of gas in the energy mix to 15% by 2030. As part of this effort, the Compressed Bio-Gas (CBG) Blending Obligation will be introduced in the City Gas Distribution (CGD) sector, starting with a 1% blending requirement in FY 2025-26, which will increase to 5% by 2028-29.
