New Delhi, December 10 (IANS). India is expected to become a major destination for global oil and gas products as the country expands refinery, petrochemical, LNG regasification and pipeline capacity even as China’s economy slows down, according to an HSBC report released on Tuesday.
The report said that global oil prices are likely to remain weak. This will benefit India, as the country imports more than 80 per cent of its crude oil requirement and any fall in global oil prices leads to huge savings in the import bill.
“For India’s oil and production, we expect modest growth over another year, but this all depends on ONGC’s ability to mitigate declines in production and enrollment blocks on schedule,” the HSBC report said. Is.”
The current fiscal year 2025 will also see an increase of at least 25 per cent in LNG regasification capacity, which will further enhance India’s capacity to absorb global LNG, he said. In terms of refining, India is expected to increase its capacity by 9 percent, adding 0.5 million barrels per day.”
The report further states that energy transition will also increase in the country. The report said that we expect that Indian oil and gas companies will start their investment in phase energy transition. We are also looking forward to the initiation of refinery transformation projects which will be linked to petrochemicals.
According to the report, India’s own demand for petroleum products is declining, especially demand for diesel, which is expected to decline further.
“HPCL, BPCL, IOCL, all given a buy rating, will benefit from weaker oil prices. We are ‘reduce’ on ONGC due to downside risk in oil prices and on petrochemicals and competitive regas,” the report said. “Hold on PLNG due to investment in terminals.”
According to the report, there will be downward pressure on global oil prices but gas prices are likely to rise in the near future.
“We maintain our Brent oil forecast at $70 per barrel. On the other hand, our team now expects the LNG market to remain tight through 2027 and that LNG supply will only exceed demand in 2027,” the report said.
According to the report, it is also expected that demand growth for transportation fuels (the highest margin product) will slow due to concerns over the Chinese economy and gradually increasing penetration of EVs.
–IANS
SKT/AS
