Multi-pronged strategy required to meet rising energy demand: Deloitte-Assocham study

With expected economic growth of over 7 per cent in the years ahead, India's per capita energy consumption is expected to more than double by 2031-32 at around 1,124 kgoe, says a new report by Deloitte, commissioned by industry body Assocham.

Interestingly, this expected consumption continues to be significantly lower than the 2009 global average of 1,797 kgoe. With demand for hydrocarbons closely linked to economic growth, demand for petroleum products is expected to grow at 6 per cent, according to the report.

The report considers the reserves, production, consumption and expected trends in future, refining capacities along with oil and gas infrastructure in terms of pipelines, city gas distribution, LNG terminals and regulatory conditions in India.

''Without exception, energy consumption in India is expected to grow. A sizeable share of this energy requirement is expected to continue to come from hydrocarbons,'' said Kalpana Jain, senior director, Deloitte. ''However, better infrastructure, clear policies and regulatory environment are required across the oil and gas value chain to make the sector attractive for investment.''

As domestic production of crude is relatively stable and does not follow the growth trend of demand, dependence on imports is likely to rise.

According to estimates of production and demand, the share of imports is set to rise from current 75 per cent to 80 per cent by the end of XIIth plan period. Meanwhile, petroleum refining capacity has outstripped demand consistently.