OIL & GAS

$140 bn of fresh investment to flow in India’s gas infrastructure over eight yrs

The Covid-19 outbreak has accelerated the transition in India’s energy sector with profound implications for the economy, including addition of $140 billion of new direct investments in gas over eight years, rise in the employment growth rate by up to 300 basis points and a lower current account deficit by an average $4-4.7 billion annually.

“It should also lower energy costs for consumers and industrial companies alike, by up to 25 per cent on average, slow global oil demand growth by 10 per cent, and nearly double the market share of gas-powered vehicles in India’s PV sales,” Morgan Stanley Research aid in a report. “More importantly, we think it will reshape consumer habits as gas becomes their go-to fuel, boosting gas demand CAGR to 8 per cent through 2025.”

The investment banking firm expects gas to account for around 10 per cent of India’s primary energy supply in 2025, up from 6 per cent currently, with renewables at 6 per cent from the current 3.6 per cent.

Source
ET Energy World
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