India Sets Sights on $500 Billion Energy Expansion

India’s energy sector offers $500 billion in investment opportunities, including in exploration, refining, and LNG, Indian Prime Minister Narendra Modi said on Tuesday.

“Our energy sector is at the heart of our aspirations. It offers investment opportunities worth $500 billion. Therefore, my appeal is: Make in India, innovate in India, Scale with India, Invest in India,” Modi in an address at the India Energy Week 2026.

“India is a land of immense opportunities for the energy sector,” the Indian prime minister said.

By the end of this decade, India aims to raise investments in the oil and gas sector to $100 billion and targets to expand the scope of exploration to one million square kilometers. The Prime Minister noted that more than 170 blocks have already been awarded, and the Andaman and Nicobar basin is emerging as the next hydrocarbon hotspot.

Last August, Modi announced the launch of a national deepwater exploration campaign, saying “India will harness its deepwater energy resources, strengthening energy self-reliance and reducing dependence on foreign fuel imports.”

India also aims to be a refining hub in Asia as it is boosting refining capacity and expects to continue relying on fossil fuels until at least 2040.

At India Energy Week 2026, Modi noted that refining is another major investment opportunity and India aims to raise its refining capacity to be the world’s largest.

As it aims to double the share of natural gas in its energy mix to 15% by 2040, India also looks to build vessels for LNG transportation, supported by a recently-launched shipbuilding program, Modi said.

As a result of the expected surge in LNG imports, India offers investment opportunities to build LNG terminals at Indian ports and regasification projects, according to the PM.

“India is now moving beyond energy security towards the mission of energy independence,” said the Indian prime minister.

By Tsvetana Paraskova for Oilprice.com

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