India to account for one-third of oil and gas project
05 April 2021
India is likely to witness an operational commencement of 647 oil and gas projects from 2021 to 2025, accounting for 33% of the total upcoming project starts across the value chain in the Asia-Pacific (APAC) region.
GlobalData’s report, ‘Asia Pacific Oil and Gas Projects Outlook to 2025 - Development Stage, Capacity, Capex and Contractor Details of All-New Build and Expansion Projects’, reveals that out of 647 projects to commence operations by 2025, upstream projects would be 80, midstream would be at 123, the refinery at 85, and petrochemicals would be the highest with 359 projects.
Downstream (refineries) and petrochemical projects together constitute about 69% of all upcoming oil and gas projects in India from 2021 to 2025. The 180 thousand barrels per day (mbd) capacity Barmer refinery is one of the key projects with a total cost of USD 4.5bn. The project is presently under the construction stage and is expected to start operations in 2025.
In petrochemicals projects, the Haldia Petrochemicals Balasore Xylene Plant (SBR) Plant is one of the key projects with a capacity of 1.6 million tonnes per annum (mtpa) and costing USD 1.9bn. The project has already received approval and is expected to start operations in 2024.
GlobalData notes that midstream projects would constitute around 19% of all oil and gas projects that start in India during the period 2021 to 2025. In the midstream sector, the pipeline segment alone constitutes 47% of all projects followed by oil storage and LNG with 36% and 14% respectively. In pipelines, the focus is on the development of natural gas pipelines with Jagdishpur–Haldia Phase II being one of the key projects with a length of 1,900 km and costing USD 1.4bn. The pipeline is presently in the construction stage and is expected to start operations in 2022.