ExxonMobil India LNG Limited, an affiliate of ExxonMobil, has signed a Memorandum of Understanding with Indian Oil Corporation Ltd. (IndianOil), to expanding its liquefied natural gas (LNG) business initiatives in the country.
"The companies together will focus on exploring new models of delivering cost-effective natural gas in India where it is most needed to complement traditional pipelines," said ExxonMobil in a press statement.
“What really matters is how we accelerate India’s access to affordable, cleaner energy," said Bill Davis, Lead Country Manager, South Asia, ExxonMobil. “We see great potential here, and are delighted to join forces with IndianOil to unlock lasting value for India," he added.
IndianOil is India’s largest state-owned downstream petroleum company by earnings. Its core businesses are refining, transportation, and marketing of petroleum products. Over the years, IndianOil has not only expanded in the downstream gas marketing in India but also ventured into petrochemicals.
ExxonMobil has been delivering natural gas to India for nearly two decades, it said.
Gas currently accounts for just under 6% of energy demand in India. The government plans to increase this share to 15% by 2030.
According to Wood Mackenzie forecast, LNG demand will double from some 37 billion m3 in 2018 to reach 75 billion m3 by 2030, equivalent to 7% of the energy mix. LNG will meet approximately 50% of this demand growth, providing a major growth opportunity for Total.