India to Drive 35% of Global Energy Demand Growth by 2044

  • Petroleum Minister Hardeep Puri, at the Gastech conference, predicted that India will contribute up to 35% of global energy demand growth over the next 20 years. 
  • The country aims to triple its natural gas consumption by 2050 and install 500 gigawatts of renewable energy capacity by 2030.

At the ongoing Gastech conference in Houston, Indian Petroleum Minister Hardeep Puri announced that India is projected to account for up to 35% of global energy demand growth over the next two decades. “If you say that global demand is increasing by one per cent, ours is increasing by three times that,” Puri stated, highlighting India’s pivotal role in the future energy landscape.

As one of the largest energy consumers and a top energy importer, India’s growing industrial sector is a crucial driver of this demand. Earlier this year, the U.S. Energy Information Administration (EIA) forecasted that India’s industrial expansion would lead to a threefold increase in natural gas consumption. In 2022, India’s natural gas usage reached 7.0 billion cubic feet per day (Bcf/d), with over 70% of that demand stemming from the industrial sector. By 2050, the EIA estimates that natural gas consumption will rise to 23.2 Bcf/d, further underscoring India’s escalating energy needs.

In addition to natural gas, India’s demand for oil is also rising. In response, the country’s petroleum ministry has announced plans to significantly enhance refining capacity, aiming to add 1.12 million barrels per day (bpd) annually until 2028. This initiative is expected to result in a 22% increase in total refining capacity over the next five years, growing from 254 million metric tons per year (approximately 5.8 million bpd) to 254 million metric tons per year (approximately 5.8 million bpd).

India is committed to a sustainable energy transition despite its increasing energy consumption. The country has set ambitious targets to install 500 gigawatts of renewable energy capacity by 2030, up from about 153 gigawatts. Earlier this month, Renewable Energy Minister Pralhad Joshi announced that several banks have pledged $386 billion in investments to support the growth of India’s renewable energy sector.

Puri expressed optimism about balancing energy growth with environmental responsibility, stating, “We will manage and succeed…on the green transition.” His remarks reflect India’s determination to meet rising energy demands while embracing a greener, more sustainable energy future.

As India moves forward, its dual focus on expanding its energy supply and investing in renewable sources illustrates the nation’s strategic approach to navigating the complex challenges of energy security and climate change. The developments in both the natural gas and renewable energy sectors position India as a crucial player in the global energy market.

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