The United Arab Emirates and Saudi Arabia are showing strong interest in investing in India’s oil refining industry, according to India’s Minister of Petroleum and Natural Gas, Hardeep Singh Puri.
Speaking at a recent industry event, Puri highlighted that foreign energy giants are drawn to India's rapidly growing domestic energy demand. "Nobody wants to come and invest in a refinery unless they can also get a slice of your growing downstream market," Puri noted.
Key Takeaways
- Expanding Capacity: India—currently the world's third-biggest oil consumer and importer—aims to boost its refining capacity from around 5.4 million barrels per day (bpd) to 6.2–6.4 million bpd.
- Huge Capital Requirements: Building new refineries and upgrading existing infrastructure comes with a steep price tag, estimated at ₹780 billion to ₹800 billion ($8.13 billion to $8.34 billion) per major project.
- Mutual Benefit: Middle Eastern energy exporters are keen to secure long-term access to India’s lucrative downstream fuel and petrochemical market, while India seeks major foreign direct investment to support its infrastructure goals.
