The International Energy Agency (IEA) has said that India will make up the biggest share of energy demand growth at 25% over the next two decades. IEA expects India’s oil demand to rise to 8.7 million bpd in 2040 from 5 million bpd in 2019. Rising oil demand could take India’s import bill to $255 billion by 2040, IEA added.
“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 Organization for Economic Co-operation and Development.
India’s 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.
The world’s second-biggest 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 India’s oil import bill to about $181 billion by 2030 and nearly treble it to $255 billion by 2040 compared with 2019, the IEA said.
The world’s fourth-largest LNG importer, which ships in about half of its natural gas needs by tanker currently, is spending billions of dollars to build infrastructure to boost use of the cleaner fuel.
Liquefied natural gas (LNG) imports are expected to quadruple to 124 billion cubic meters (bcm), or about 61% of overall gas demand by 2040, IEA said. That would be up from imports of 76 bcm, or about 58% of gas consumption by 2030.