Thursday, October 28, 2021

India’s thirst for oil pushing mid-stream projects to record highs

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Data and analytics company GlobalData says India is likely to start operations of 118 midstream oil and gas projects from 2021 to 2025, accounting for 35% of the total upcoming midstream project starts in Asia by 2025. According to the analytics company, out of 118 projects to commence operations in India, transmission pipelines projects would be 55, liquids storage would be 43, LNG regasification 17, and gas processing projects would be three.

“Being one of the rapidly growing economies in the world, India is one of the largest consumers and importers of oil and gas globally. The country is developing a robust midstream infrastructure for greater imports, transport and storage to meet the growing demand for oil and gas,” said Bhargavi Gandham, Oil & Gas Analyst at GlobalData.

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Among the midstream segments, transmission pipelines projects would constitute around 47% of all midstream projects’ starts in India during the period 2021 to 2025. The Kandla–Gorakhpur LPG pipeline is one of the key projects with a length of 2,757 km and costing US$1.4bn. The pipeline project would serve LPG bottling plants in the states of Gujarat, Madhya Pradesh and Uttar Pradesh that meets the growing demand for the commodity in India.

GlobalData notes that liquids storage projects would constitute around 36% of all midstream projects starts in India during the period 2021 to 2025. Among the upcoming liquids storage projects, the Chandikhol project leads with a storage capacity of 30 million barrels and costing US$941m. The project is presently in the approval stage and is expected to start operations in 2025.

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Among the LNG regasification projects, Karwar Floating project leads with an LNG regasification capacity of 365 billion cubic feet and costing US$573m. The project is presently in the construction stage and is expected to start operations in 2023.

In the gas processing segment, the Raageshwari II project dominates with a gas processing capacity of 100 million cubic feet per day (mmcfd). Vedanta Resources Ltd is the operator as well as 100% equity holder of the project, which is expected to start operations by 2022. Dirok II and Kaza are the other projects that collectively account for the remaining 66 mmcfd of gas processing capacity expected to become operational during 2021 to 2025.



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