‘We must invest’, says IOC Chairman highlighting strategic investment and global partnerships for India's energy sector

India's Energy Sector Poised for Massive Expansion

India's energy landscape is on the cusp of transformative growth, driven by the nation's fast-paced economic rise. As the country gears up to become the world's third-largest economy, its energy needs are surging, creating a compelling case for substantial investments. Indian Oil Corporation (IOC) Chairman Arvinder Singh Sahney has been vocal about this, stressing that the time to act is now. With GDP growth showing no signs of slowing after consistent performance over the past four to five years, energy demand is set to at least double in the next decade or so. This expansion isn't limited to traditional fuels; it spans a wide array of sectors that promise both opportunity and sustainability. Sahney's message resonates strongly at events like the India Energy Week in Goa, where global leaders gathered to discuss these dynamics.

The scale of the opportunity is staggering, pegged at around USD 500 billion across exploration, refineries, petrochemicals, renewables, and emerging areas like green hydrogen. IOC, already supplying about 9 percent of India's total energy needs, aims to boost this to 12 percent by broadening its portfolio. This shift positions the company as a comprehensive energy provider, blending conventional sources with cleaner alternatives. Peak oil demand in India remains years away, likely not before 2035, followed by a plateau, ensuring that investments in refining capacities will pay off. Sahney emphasized that such moves are based on thorough assessments of future consumption patterns, alleviating concerns over underutilization.

Call for Strategic Investments and Global Tie-Ups

Sahney's push for investment underscores the need for both domestic efforts and international collaboration to achieve quality growth. International players can bring cutting-edge technology that minimizes pollution while keeping energy affordable, aligning with India's sustainability goals. IOC is leading by example, with plans for India's largest green hydrogen plant capable of producing 10,000 tonnes annually by late 2027. The company also holds the unique license for sustainable aviation fuel production and dispensing, set to start by mid-2026. Targets include 18 GW of renewable capacity by 2030, covering solar, wind, compressed biogas, and more. These initiatives reflect a balanced approach, where conventional fuels grow alongside transition energies.

When growth of this scale occurs, energy demand will naturally rise. Consequently, we must invest--some will be done by us, and some by international investors. The PM says that 'this is the right time, the time is now.' India's GDP is seeing unprecedented growth.

Partnerships are key, especially with regions like the European Union, where advanced green technologies abound. Both India and Europe are energy importers committed to cleaner paths, but India's higher growth rate amplifies its needs. An India-EU Free Trade Agreement could unlock potential in technology exchange, fostering eco-friendly development. Even the US has reaffirmed its strong energy ties with India at the India Energy Week, focusing on hydrocarbons, LNG, and civil nuclear tech. IOC maintains a purely commercial stance on crude procurement, buying from diversified sources based on the best terms, regardless of geography. This pragmatic approach ensures energy security and cost efficiency.

Pioneering Projects and Future Outlook

IOC's ambitious capex of Rs 35-40,000 crore annually continues into the next fiscal year, funding these diverse projects. Beyond green hydrogen and SAF, the company is exploring nuclear energy, identifying land and seeking global partners. Efforts in green ammonia and ecosystems for new technologies aim to build consumer confidence for scaled supply. These steps are crucial as India navigates a volatile global oil market while diversifying sources. Sahney highlighted that IOC isn't manufacturing every technology in-house but focusing on viable use cases to drive adoption. This strategy supports not just energy supply but also economic prosperity and reduced emissions.

In summary, IOC Chairman AS Sahney's emphatic call to "invest" captures the urgency for India's energy sector. With a USD 500 billion roadmap, global partnerships, and IOC's forward-thinking projects in renewables and hydrogen, the nation is set for sustainable growth. These efforts promise to meet rising demands while embracing cleaner futures, benefiting economy and environment alike.