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India's rising demand for LNG and oil draws traders from around the world

Trafigura, for example, is looking to form long-term relationships with Indian state oil companies.

Trading firm executives said that as consumption growth in major economies slows, they see opportunities for crude, refined fuels, and liquefied gas (LNG).

Sachin Gupta is the chief executive officer of Trafigura India. He said that India has "massive opportunities" in India. He cited the strong demand for gasoline, diesel and liquefied petrol gas, and added that India will be buying "a lot" liquefied gas.

Gupta believes that Indian oil demand will reach 9 million barrels a day by 2050. It is currently around 5 million barrels a day. Trafigura announced on Friday that it had signed a “landmark crude agreement” with Bharat?Petroleum Corp. to supply Iraqi Basrah crude and Omani crude oil to the Indian refiner. BPCL has also signed a?term agreement?with TotalEnergies to procure UAE crude.

GROWING DEMAND Indian Oil Corp. (IOC), which is the largest refiner in India, signed last year a five-year deal with Trafigura for 2.5 million metric tonnes of LNG. The deal was valued between $1.3 billion and $1.4 billion.

S.P. Srivastava, IOC's director of marketing and sales, told reporters at the conference that IOC expects annual diesel demand to grow by?2-3% and gasoline demand to rise by 5-6% by 2030. Srivastava, IOC's head of marketing, told reporters that the company anticipates the annual demand for diesel to increase by?2-3% by 2030 and the demand for gasoline to increase by 5-6%.

IOC Chairman A.S. Sahney announced that the company signed a preliminary deal with Engie, based in Paris, for LNG and other 'natural gas trading opportunities' in Asia-Pacific.

Petronet LNG, the world's largest LNG importer, predicts that LNG imports will increase to 28-29 million tonnes in 2026 from 25.5 million tonnes last year.

Trading giant Vitol believes that the majority of India's refined product will be consumed domestically.

Kieran Galagher, Vitol Asia's head, said that 500,000 barrels of refining capacity would be coming on line. "Outside...summer seasonality and exports, the majority of the products derived by that capacity will be consumed in the country."

The petrochemicals sector offers traders a range of opportunities, as the government has estimated that production will increase by 29,62 million tonnes to 46 million by 2030. (Reporting and editing by Mayank Bhahardwaj and Kirsten Donovan; Additional reporting by Anjana Anil, Tanay Dhumal and Mohi Verma)

(source: Reuters)