Union Minister for Petroleum and Natural Gas Hardeep Singh Puri said on Tuesday said that India’s petroleum and energy sector is entering a transformative phase that will redefine its position in the global energy landscape. Highlighting the sector’s rapid expansion and policy-driven innovation at the inaugural session of the Energy Technology Meet in Hyderabad, Puri said India is set to become a global refining and energy hub, playing a pivotal role in shaping the world’s energy future.

The Minister noted that while the global energy market is projected to grow at a slower pace—with many refineries facing closure – India remains a bright spot, expected to contribute nearly 30-33% of global energy demand growth in the coming decades. “Our energy journey reflects remarkable progress, driven by visionary policy frameworks, innovation, and sustained investment,” he said.

India’s refining capacity, currently around 258 million metric tonnes per annum (MMTPA), is expected to increase to 310 MMTPA by 2030 and further scale up to 400-450 MMTPA in the long term. This expansion, Puri said, would place India among the top three refining hubs globally, especially as nearly 20% of global refining capacity—over 100 refineries—is expected to shut down by 2035.

Puri highlighted India’s achievements in ethanol blending, noting that the country achieved 10% blending five months ahead of schedule in 2022, and has now advanced the 20% target from 2030 to 2025–26. “India’s strong policy support and innovative approach have enabled such accelerated progress,” he added.

India is already the fourth-largest refining nation and among the top seven exporters of petroleum products, exporting to over 50 countries with export earnings exceeding USD 45 billion in FY 2024–25. The refining sector contributes nearly one-fifth of national revenue, supported by both public and private sector enterprises.

Domestic petroleum consumption, which was about 5 million barrels per day in 2021, has now increased to 5.6 million barrels per day and is expected to touch 6 million barrels per day soon, propelled by India’s robust economic growth and rising per capita income.

Emphasizing India’s growing integration of refining with petrochemicals, Puri said that while India’s petrochemical utilization is currently about one-third of the global average, there is immense potential for growth. The petrochemical intensity index has already improved from 7.7% to 13%, and new refineries are being designed as integrated petrochemical complexes to enhance efficiency, value addition, and export competitiveness.

On the front of indigenization and innovation, the Minister said India has achieved nearly 80% import substitution across the energy value chain. He acknowledged that while certain specialized components like catalysts still rely on imports, a balanced approach to Atmanirbharata – focusing on efficiency and global competitiveness – remains central. The government, he added, has launched a Production Linked Incentive (PLI) scheme and set up a National Centre for Catalyst Research to boost R&D and domestic manufacturing in energy technologies.

Highlighting progress in green hydrogen, Puri said that recent tenders by IOCL and HPCL have helped reduce hydrogen prices from around USD 5.5/kg to USD 4/kg, bringing the fuel closer to commercial viability. Green hydrogen, natural gas, and biofuels, he said, will form the three pillars of India’s clean energy transition, supported by the Global Biofuels Alliance to promote international biofuel trade and the use of Sustainable Aviation Fuel (SAF).

Puri also outlined India’s goal to increase the share of natural gas in its energy mix from 6% to 15%, while maintaining a balanced transition in which conventional fuels continue to play a key role. “Our strategy integrates both fuel and petrochemical growth as we move toward sustainability and self-reliance,” he said.

Reflecting on India’s refining journey from Digboi Refinery in 1901 to today’s world-scale facilities, Puri said that post-2014 reforms have unleashed a new era of growth and innovation. Ongoing projects such as the Barmer Refinery in Rajasthan and the Andhra Refinery exemplify the sector’s forward momentum. He also mentioned that over 100 biogas plants are already operational, with 70 more in the pipeline, connecting technology, sustainability, and economic opportunity.

As India moves toward becoming a USD 10 trillion economy, Puri asserted that the nation’s energy sector will not only meet domestic demand but also serve as a key player in global markets. “By 2035, India could rise from being the world’s fourth-largest to the second-largest refining power,” he said.

He concluded that India’s young population, rising energy demand, and proactive policies will ensure that the country doesn’t just participate in but actively shapes the global energy future, marking its emergence as a refining and energy powerhouse for the world.