India’s Petrochemical Demand Stays Resilient Amid Global Slowdown

India’s Petrochemical Demand Stays Resilient Amid Global Slowdown | OilPrice.com

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Breaking News:

ByTsvetana Paraskova– Feb 14, 2025, 6:45 AM CST

Demand for petrochemicals in India is expected to remain resilient as consumption of products is rebounding, executives in the industry told Reuters this week.

India’s petrochemicals demand will be a bright spot among the major markets, amid a slowdown in demand in other markets, most notably China, and new supply coming from new plants in Asia and the Middle East, according to the executives who spoke to Reuters on the sidelines of the India Energy Week 2025 conference.

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“We are seeing good local demand in the sectors like propylene where our company operates,” said Sanjay Khanna, director of refineries at one of the top Indian refiners, Bharat Petroleum.

Demand for petrochemical products from the automotive sector is good and demand for household appliances is also recovering, noted Ganesh Gopalakrishnan, Global Head of Trading at France’s supermajor TotalEnergies.

Weaker global demand has depressed petrochemical margins in recent months.

But Indian refiners have been mostly spared from very low margins because they produce their own petrochemical feedstock naphtha, Rystad Energy’s analyst Pankaj Srivastava told Reuters.

India is positioning itself for a petrochemical boom, with $87 billion expected over the next decade to meet surging demand. As more of its citizens rise into the middle class, the need for petrochemical-based products—from plastics to fertilizers—is set to soar. According to India’s oil minister, Hardeep Singh Puri, this growing demand opens a window for significant investment as India’s per capita consumption of petrochemicals continues to lag behind developed nations.

State-run and private oil companies, such as Nayara Energy, Haldia Petrochemicals, and ONGC, are already stepping up. These firms have collectively committed $45 billion toward boosting production, with more investments anticipated. ONGC, for its part, said in September that it was assessing plans for an $8.3 billion refinery plus petrochemicals project.

India’s domestic petrochemical production is expected to jump from 29.6 million tons today to 46 million tons by 2030.

By Tsvetana Paraskova for Oilprice.com

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