India to be largest source of energy demand growth to 2040: IEA

Gulf Today Report 

India sets to overtake the European Union as the world’s third-biggest energy consumer by 2030, said the International Energy Agency (IEA).

It is expected that the country’s consumption is likely to double as its gross domestic product (GDP) expands to an estimated $8.6 trillion by 2040.

"This is underpinned by a rate of GDP growth that adds the equivalent of another Japan to the world economy by 2040," said the IEA, the energy agency and policy adviser for members of the Organisation for Economic Co-operation and Development. 

READ MORE 

Oil prices gain on hope for demand recovery

Gold prices rise as dollar falls

DP World reports 7.6% volume growth in Q4 2020

The growing energy needs will make India more reliant on fossil fuel imports as its domestic oil and gas production have slacked for years.

India's oil demand is expected to rise to 8.7 million barrels per day (bpd) in 2040 from about 5 million bpd in 2019, the IEA said, while its refining capacity will reach 6.4 million bpd by 2030 and 7.7 million bpd by 2040, from 5 million bpd.

Additionally, an increase in oil demand could double the country’s oil import by 2030.