Oil Daily | India's Petrochemical Growth to Surge with $87 Billion Investment Amid Declining Fuel Demand

【Global Oil Supply and Demand】

India is preparing for a petrochemical surge with $87 billion expected to address rising demand over the next decade. As the middle class grows, the need for petrochemicals increases. India's sector, currently at 25-30 million metric tons annually, is projected to expand to $300 billion by 2025, aligning with the transition to a lower-carbon economy.

India's petrochemical production is forecast to rise from 29.6 million to 46 million tons by 2030. This expansion is vital as traditional fuel demand declines with EV adoption. Indian refiners are increasing their refining capacity by 22% over the next five years to meet both fuel and petrochemical demands.

Indian state-owned HPCL plans to commission a new LNG terminal by January, seeking long-term LNG suppliers. The terminal, with a regasification capacity of 5 mmtpa (expandable to 10 mmtpa), aligns with India's push for cleaner fuels and increased natural gas consumption, expected to grow at 4.4% annually by 2050.

【Oil-Producing Countries Dynamics】

Russia is reportedly circumventing Western sanctions on its LNG fleet by transferring vessel ownership to a new Dubai-based firm. This move involves three LNG tankers previously managed by Russian companies, now under Matias Ship Management. Russia continues to amass a fleet to export LNG despite sanctions.

【Latest Oil Policies】

The U.S. intensified efforts to disrupt Russia's Arctic LNG 2 exports by targeting involved companies and vessels. This follows Russia's ongoing attempts to bypass Western restrictions and export its LNG products.

【Industry News】

BP is exploring selling a minority stake in its offshore wind business to reduce project development spending. The company is shifting back to oil and gas investments, halting new offshore wind projects, and scrapping its 2030 oil and gas production reduction target.

China's coal production rose by 4.4% last month, reaching 414.46 million tons. The increase followed safety inspections and maintenance end. Coal remains dominant in power generation, with imports rising due to favorable foreign supply pricing despite a surge in hydropower earlier this year.

TotalEnergies plans significant turnaround work at its Antwerp refinery in late 2025. The work includes installing a new reactor and furnace maintenance. With declining refining margins, TotalEnergies expects reduced earnings compared to previous quarters.

【Company News】

SLB exceeded shareholder return commitments, with Q3 profits surpassing expectations despite softened short-cycle activity. Revenues were stable, with growth in the Middle East and North America. SLB expects high levels of upstream investment to continue despite global spending moderation.