India will make up the biggest share of energy demand growth at 25 over the next two decades, as it overtakes the European Union as the worlds thirdbiggest energy consumer by 2030, the International Energy Agency IEA said.
Indias energy consumption is expected to nearly double as the nations gross domestic product GDP expands to an estimated 8.6 trillion by 2040 under its current national policy scenario, the IEA said in its India Energy Outlook 2021 released on Tuesday.
This is underpinned by a rate of GDP growth that adds the equivalent of another Japan to the world economy by 2040, said the IEA, the energy agency and policy adviser for members of the Organisation for Economic Cooperation and Development.
Indias growing energy needs will make it more reliant on fossil fuel imports as its domestic oil and gas production has been stagnant for years despite government policies to promote petroleum exploration and production and renewable energy.
Indias oil demand is expected to rise to 8.7 million barrels per day bpd in 2040 from about 5 million bpd in 2019, the IEA said, while its refining capacity will reach 6.4 million bpd by 2030 and 7.7 million bpd by 2040, from 5 million bpd.
The worlds secondbiggest net oil importer after China currently imports about 76 of its crude oil needs. That reliance on overseas oil is expected to rise to 90 by 2030 and 92 by 2040, the IEA said.
Rising oil demand could double Indias oil import bill to about 181 billion by 2030 and…