1. India’s Oil and Gas Sector: 2023–2025
 

Between 2023 and 2025, India’s oil and gas sector navigated a complex energy landscape shaped by global volatility, domestic demand growth, and long-term decarbonization goals.

Key dynamics during this period included:

• Crude oil demand in India remained robust, driven by mobility, industry, and petrochemical consumption. Daily demand surpassed 5 million barrels by early 2025.

• Natural gas gained importance in India’s transition strategy, with demand increasing in city gas distribution, fertilizers, and power generation.

• Imports remained a major part of India’s energy mix, with over 80% dependency on crude oil and 50%+ on LNG for gas consumption.

• Investments in pipeline infrastructure, gas terminals, strategic reserves, and refinery capacity expansion continued.

India balanced short-term energy security needs with a long-term shift toward cleaner fuels and diversified supply sources.

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2. Key Challenges and Trends

• Global price fluctuations, driven by geopolitical tensions and supply chain disruptions, impacted fuel affordability and inflation.

• Domestic production of oil and gas remained modest despite licensing rounds and enhanced recovery efforts.

• The expansion of gas infrastructure faced implementation delays in some regions, though progress continued in key industrial corridors.

• Refineries invested in upgrading to process diverse crude blends, meet clean fuel standards, and add petrochemical capacity.

• The push for biofuels, green hydrogen, and carbon capture projects began to reshape long-term investment strategies.

India's energy sector is undergoing structural change, balancing hydrocarbon resilience with energy transition imperatives.

 

3. France–India Cooperation in Oil and Gas

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France and India maintain a longstanding partnership in the energy sector, particularly in:

• Engineering and technology solutions for refining, petrochemicals, and downstream operations.

• LNG infrastructure, including terminal design, logistics, regasification, and safety systems.

• Energy efficiency, automation, and environmental control in refineries and gas networks.

• Joint R&D and industrial collaboration around hydrogen, carbon capture, and decarbonized fuels.

French companies play a role in India’s modernization of energy infrastructure and diversification of energy technologies.

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4. Outlook Beyond 2025

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India’s oil and gas sector will continue to evolve with the dual objectives of energy security and climate alignment:

• Crude demand is expected to rise steadily toward 6 million barrels per day by 2030.

• Gas will play a strategic bridging role, with targets to increase its share in the energy mix from ~6% to 15%.

• Major investments will go into LNG terminals, cross-country pipelines, and gas-based industrial clusters.

• A shift toward cleaner fuels will intensify, with biofuels, synthetic fuels, and hydrogen gaining traction.

• Digitization, automation, and predictive maintenance will enhance efficiency and safety across the oil and gas value chain.

India will remain one of the world’s largest energy markets, with increasing emphasis on resilience, sustainability, and technological innovation.

 

Strategic Relevance for FIBC

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• Supports French industry participation in India’s oil and gas modernization, including refining, LNG, and safety technologies.

• Enhances bilateral cooperation in energy infrastructure, fuel innovation, and long-term energy transition projects.

• Creates space for FIBC to promote partnerships in decarbonization, smart energy systems, and cross-border R&D.

• Enables members to explore opportunities in public-private energy forums, joint tenders, and industrial collaborations.

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