Hyderabad: Asserting that trade is not governed by any established set of rules, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Tuesday said there is adequate crude oil supply in the international market and if one supply stream is disrupted there are alternative sources available.
Speaking at an interactive session here, Puri said India ranks fourth globally in refining capacity, exporting refined products worth over USD 45 billion during last fiscal to 50-plus countries, and is aiming to reach the third position.
According to the minister, currently, India is importing crude from 40 countries and they are increasingly integrated with petrochemicals, enhancing efficiency and export competitiveness even as the crude consumption is expected to to reach six million barrels per day in a couple of quarters from the existing 5.6 million.
“So, I mean, today, I shouldn’t say this, because I could be misquoted. But the fact is there is enough supply in the global market of crude. So even if one supply goes down, you put alternatives elsewhere,” he said.
Puri pointed out that the International Energy Agency estimated that over the next two decades, 25 per cent of the increase in global demand will come from India. However the figure has been revised upwards to 30 per cent.
He also highlighted India’s success in meeting its ethanol blending target ahead of schedule. “When I joined the Oil and Gas ministry in 2021, there was a target of 10 per cent ethanol blending to be achieved by the end of 2022 November. However, it was achieved five months in advance.”
Citing reports, Puri said over 101 of the world’s 420 refineries, representing nearly 18.4 million barrels per day, about 20 per cent of global capacity are at risk of closure within the next 7 to 10 years.
“But the fact of the matter is, whilst 21 per cent of global capacity is being reduced, by the way, that’s not the only one. Some of those teapot refineries will also go. So the figure is much higher. But the good news is that you’ve got India. You’ve got today, what, 250 or 258 or so million metric tons per annum,” he said.
The minister said energy will play a crucial part in India’s growth from USD 4 trillion to 10 trillion, and that the energy framework enhancement will not only supply India, but in the years to come for countries around India, and globally.
Meanwhile, a senior official of the Department of Petroleum and Natural Gas, replying to a query on the crude imports from Russia, clarified that such decisions are taken by companies, not the government.
“Companies decide what the most economical oil is and in compliance with the law. Companies also decide that,” the official told PTI.
He further said there was no direction for the government to any crude importers whether to buy or not to buy from Russia.
Currently, Russian imports account for about 20 per cent of the overall crude imports in India.
Reliance Industries Ltd, India’s largest buyer of Russian oil and most impacted by the latest US sanctions, recently said it will comply with all applicable restrictions and will adjust its refinery operations to meet compliance requirements.
In a statement, a company spokesperson had said Reliance is “currently assessing the implications” of the latest sanctions on two Russian oil giants – one of which has a long-term crude oil supply agreement with Reliance.
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