India’s energy demand is expected to grow at 4.2% over the next 25 years.
Oil giants are looking to diversify and invest in India’s green economy as the conventional hydrocarbon space undergoes technological disruption.
Russia’s Rosneft, Norway’s Statoil ASA, France’s Total SA and Royal Dutch Shell Plc have been exploring opportunities in India’s clean energy space. Some of these global majors already have a presence in the Indian conventional hydrocarbon space.
Saudi Arabian Oil Co., the world’s largest oil producer, is looking to reportedly buy a stake in RIL’s refining and petrochemicals businesses and has partnered with Indian state-run oil companies for setting up the world’s largest oil refinery and petrochemical complex in Maharashtra.
If reports are to be believed the latest entrant in this space will be a tie up between GAIL (India) Ltd and ExxonMobil Corp., the world’s most valuable energy company, who may form a joint venture to set up a green energy platform in India.
The proposed ExxonMobil-GAIL tie-up comes against the backdrop of Infrastructure Leasing and Financial Services Ltd (IL&FS) agreeing to sell its 874 megawatts (MW) operational wind energy portfolio to the state-run gas utility for ₹4,800 crore in its first asset sale since it started defaulting on payments last year.
Gail will tie up with ExxonMobil for a new energy venture. They will set up a joint venture for green energy sources. ExxonMobil will invest in it.
With the biggest expense being the cost of capital in the green energy business, the financial heft of global oil majors will help India’s clean energy sector.
Reference- livemint