India’s energy consumption to grow 90% by 2050, says CEO of Russia’s Rosneft

New Delhi: With a growing economy, India's energy consumption is likely to nearly double by 2050, one of the fastest growth rates in the world, said Igor Sechin, CEO of Rosneft, one of Russia's largest oil producers.

Addressing global business and political leaders at the 27th St. Petersburg International Economic Forum (SPIEF), he also talked up fossil fuel and hit out at what he called a “green agenda”.

Sechin, whose firm is controlled by a Russian holding company predicted the Indian economy would overtake that of the US by 2050.

"Over the next five years, India is projected to continue its strong economic momentum and become one of the top three largest economies in the world with a GDP of $5 trillion, and by 2050 will overtake the US in terms of the size of the economy,” a statement by Rosneft quoted him as saying.

Also read |   India's Russian oil imports rise to nine-month high in April on shipments

According to the statement, Sechin said India's end-use energy consumption is set to grow by 90% by 2050, one of the fastest growth rates in the world.

He said developing countries will be the main drivers of oil consumption in the coming decades. By 2030, demand growth in this group of countries is expected to account for 95% of global consumption growth. The highest growth in oil demand is expected in Asian countries, which are Russia's main trading partners, Sechin said.

Limitations to hydrogen production

Talking of energy transition, the Rosneft CEO said that although hydrogen is considered a promising clean fuel, there are limitations in production technology, logistics and market readiness.

He noted that while renewable energy accounts for less than 5% of global energy production and electric vehicles only make up around 3%, consumption of oil, gas, and coal continue to rise. Sechin was of the view that the lack of profitability in green energy initiatives is leading to diversions from the traditional energy sector, exacerbating the challenge of transitioning to sustainable energy sources.

Also read |  Rosneft says Q1 net income more than doubled to $4.4 bln from Q4

Observing that energy transition should be well-balanced and focused on addressing the interests of developing countries, the Rosneft CEO said that to achieve energy security, it is necessary to ensure sufficiency, affordability and reliability of energy sources.

“Aggressive promotion” of the "green agenda" actually means declaring an energy war on the majority of the world's population, and overcoming energy inequality is impossible without reliable supplies of oil and gas, said the Rosneft CEO, according to the statement.

Major Indian partner

Rosneft is a major partner of Indian energy companies. It recently signed a term agreement with Indian oil companies to increase oil supplies and diversify India’s oil grades. ONGC Videsh Ltd, Oil India Ltd, Indian Oil Corporation and Bharat Petroresources have been owners of 49.9% of Rosneft’s subsidiary JSC Vankorneft since 2016.

Further a consortium of Oil India Ltd, Indian Oil Corporation and Bharat Petroresources also owns 29.9% of Taas-Yuryakh Neftegazodobycha, which develops the Central Block and the Kurungsky license block of the Srednebotuobinskoye field which is among Rosneft's largest assets in Eastern Siberia.

Also read |  As Russian discounts fall, Indian refiners join hands to negotiate better terms

Russia has emerged as the top suppliers of oil to India in the past two years as the sanctions-hit country offered deep discounts to Indian oil refiners. According to the Indian ministry of commerce, India imported crude worth $46.48 billion from Russia in FY24, about 50% more than in FY23. 

The share of imports from Russia was one-third of the total oil import bill in value terms.

The West imposed sanctions on Russia following its invasion of Ukraine iun 2022.