The Saudi crown Prince Mohammed bin Salman visited India last week. During his visit the Saudi Prince pledged to establish joint business ventures with Indian companies worth $100 billion. In the formal reception with Prime Minister Narendra Modi held in New Delhi on Wednesday, the Saudi Prince admitted that more than $44 billion have already been invested in Indian projects since the Indian counterpart’s visit to Riyadh in 2016.
Energy ties between New Delhi and Riyadh have deepened in recent years, with the most important project in the industry being the $44 billion investment on the construction of a mega-refinery near the port city of Ratnagiri. The particular investment accounts for 1.2 million barrels of crude oil per day, equal to 60 million metric tonnes per annum. Saudi Aramco and Emirati Adnoc possess the 50% of shares of the Ratnagiri project. The rest is spread between three Indian companies, namely, Indian Oil, Hindustan Petroleum and Bharat Petroleum. Construction works are expected to initiate by 2021 and the facility will become fully operation by 2025.
India is an important energy market. In 2018, India’s energy requirements reached 245.000 barrels of crude oil per day, which account roughly for the 14% of global oil demand levels. In a recent study conducted by the Organisation of the Petroleum Exporting Countries (OPEC), India is expected to require more than 5.8 million barrels of crude oil per day by the 2040 horizon.