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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 partnerships in India with state oil companies because of a rare combination of increasing fuel demand and expanded refining capacity.

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

"We see huge opportunities in India," said Sachin Gupta. Chief executive of Trafigura India. He pointed to the strong demand for gasoline, diesel and liquefied oil gas.

Gupta believes that Indian oil demand will reach closer to 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 agreement" to supply Iraqi Basrah crude and Omani crude oil to the Indian state refiner. BPCL has also?signed a contract 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 communications, 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 expects the annual demand for diesel to grow by 2-3% and the demand for gasoline to increase by 5-6% between 2030.

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

The top gas importer, Petronet?LNG, forecasts that LNG imports would rise from 25.5 million to 28-29 million tonnes in 2026.

Trading giant Vitol anticipates that?most of India’s refinery production will be consumed domestically.

Kieran Galagher, Vitol Asia's head, said that 500,000 barrels of refining capacity would be coming online. "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)