Market Overview

According to the prediction for the next five years, India's oil and gas industry is a sizable market with a CAGR of 3%. The COVID-19 epidemic has had a severe effect on the oil and gas business in India. Due of the unplanned shutdown, oil and gas businesses' revenue fell. Due to a major decrease in the amount of traffic on the highways, demand for diesel, the most popular fuel in the nation, has decreased. The India oil and gas market is anticipated to be driven by factors like the expanding natural gas pipeline capacity and the rising demand for petroleum products over the forecast period. The high volatility of crude oil prices and the significant reliance on imports of natural gas and crude oil to meet domestic demand, however, are anticipated to impede the expansion of the Indian oil and gas sector.

Due to the expansion of various refinery projects, the refining capacity has increased significantly in recent years. As a result, growth in the downstream sector is anticipated during the predicted period.

The KG Basin has had some noteworthy gas hydrate discoveries. A boom in natural gas production could result from the economically viable extraction of the gas hydrates, which could present tremendous prospects for the businesses.

The Indian government is increasing its investments in LNG terminals and oil and gas pipelines throughout the nation as a result of the rise in gas imports. As a result, the market is anticipated to be driven by rising investments in the midstream oil and gas sector.

In the following two decades, it is expected that India's energy demand will increase by 50%. The rising global population and rising living standards in developing nations are both responsible for this increase in demand. Petroleum fuel continues to be a significant energy source globally even though new and renewable energy sources are becoming more and more popular. Over the coming decades, it is anticipated that this tendency will support the expansion of the downstream oil and gas business.

There were plans to build new refineries across the country. For instance, Indian Oil Corporation Limited said in August 2021 that it will spend USD 15 billion to triple its refining capacity by 2025.

The board of directors of Indian Oil, a state-run oil refiner, gave its approval in January 2021 for the construction of a new refinery at Nagapattinam, Tamil Nadu. The refinery is anticipated to cost INR 31,500 crore and have an annual refining capacity of 9 million metric tonnes.

The Indian Oil Group's 80.2 MMTPA (million metric tonne per annum) refining capacity in August 2021 represented 33% of the country's total refining capacity (249.87 MMTPA). The company has disclosed plans to increase its annual oil refining capacity to 87.55 million tonnes by 2025.

The market may be driven by rising investment in the midstream sector.

Due to growing investments in forthcoming pipelines across the nation, the pipeline is currently the most cost-effective method of moving natural gas, crude oil, and petroleum products over large distances. In the upcoming years,it is anticipated that the midstream sector would contribute a respectable part to the Indian oil and gas industry.

The nation had roughly 17,389 km of natural gas pipelines (onshore: 17,365 km and offshore: 24 km), 14,729 km of refined products pipelines, and 10,419 km of crude oil pipelines (onshore: 9,825 km and offshore: 594 km). In March 2020, India had 6 LNG terminals in addition to the pipelines.

The Gas Authority of India Ltd (GAIL), with 32,718 km of the nation's natural gas pipeline network, held the highest stake as of June 30, 2021.

Indian Oil Corporation controlled 50.88% (5,301 km) of the country's oil pipeline network as of 2020. The expansion of the gas pipeline network across India by the Indian government will cost USD 9.97 billion, which will boost the market.

In addition, the Indian government granted USD 774 million in January 2020 for a natural gas pipeline in the northeast as a component of a national gas grid being built to connect distant areas of the nation. The 1,656 km pipeline is anticipated to be finished in 2023 and have a construction cost of up to INR 92.65 billion.

Competitive Environment

The oil and gas industry in India has a fair amount of consolidation. The principal participants are Punj Lloyd Limited, Oil and Natural Gas Corporation, Oil India Limited, Reliance Industries, and Indian Oil Corporation Limited.

Significant Participants
  • Punj Lloyd Limited
  • Oil India Limited
  • Reliance Industries Limited
  • Oil and Natural Gas Corporation
  • Indian Oil Corporation Limited
Recent events

Bharat Petroleum Corporation Ltd. announced plans to invest USD 13.66 billion over five years in September 2021 to increase India's petrochemical capacity, refinery effectiveness, upstream oil and gas exploration and production, and infrastructure for marketing (fuel).

Bharat Petroleum Corporation Ltd. declared in July 2021 that it intended to build its first-generation ethanol manufacturing facility in Telangana at an estimated cost of USD 134.04 million.

Significant Participants

Engineering for offshore pipelines should be done systematically. First, it is important to be aware of the pipeline's design specifications. Practically speaking, it is crucial to set aside time and energy to produce an executive design summary that is well-written, concise, and thorough. All operational needs should be met by the summary. Additionally, it must lower the probability of the assumed parameters. The absence of any more assumptions during the engineering phase is excellent. Experience and practise have shown that if this isn't done correctly, competing assumptions may be created, which frequently leads to major issues.

The Information required in the Pipeline Design Summary

Any pipeline project's design summary must, at a minimum, provide the following information:

  • The locations and heights of the end points.
  • The bathymetric and topographic data sources that are available.
  • The chemical composition of the fluid to be transported by the pipeline (and whether it will change during the design life).
  • The maximum and minimum pressure at the upstream end.
  • The maximum and minimum pressure at the downstream end.
  • The maximum and minimum temperatures at the upstream end.
  • Any known limitations (politics, environment, other uses of the seabed such as fishing, cables, and navigation) on route selection.
Design Sequence for Subsea Pipelines

The design process can begin once the owner has approved the design summary following extensive discussions with the engineering consultant and construction contractor. The following is the optimal design sequence for subsea pipelines:

  • Route selection: this determines pipeline length as well as maximum water depth.
  • Material Selection: This determines the pipe's type and material (single pipe or bundle (piggy-backed), rigid or flexible, carbon steel, corrosion-resistant alloy, or composite).
  • Hydraulic and thermal analysis: to determine pipeline diameter, temperature and pressure profiles, and whether thermal insulation, heat tracing, or cooling is required);
  • Material selection for the external anti-corrosion coating, internal coating, concrete weight coating, and (if necessary) thermal insulation
  • Wall thickness
  • Stability design: making the pipe heavy enough to be stable on the seabed and determining whether the pipeline will need to be trenched.
  • Cathodic protection system design.
  • Confirmation of pipeline constructability.
Consideration for Design

Pipeline design is rarely a one-time event, as a series of design cycles are required to address the complex interactions between various factors.
If the design is to converge inwards (towards an optimal solution), rather than diverge outwards into a series of unresolved and conflicting requirements, the design process must be carefully managed. Typically, the sequence cannot be completely automatic, and experience is required to direct it.

Offshore pipeline Designing companies for expertise service

While the oil and gas markets are volatile, the demand for safe and environmentally friendly transportation remains constant. The impact on the country's pipeline infrastructure is significant. AVIN engineering consultancy works with you to complete pipeline design projects of all sizes.

AVIN Engineering offers full-service technical and environmental capabilities for pipeline initiatives developed across multiple industries — oil and gas, biofuels, chemicals, petrochemicals, power — to apply successful, creative solutions and best practises, improving your competitiveness and profit margins.

Our AVIN team offers a comprehensive range of related services for every pipeline project.

Pipeline Designing Project Program Management

Whether conceptual, FEED, detailed engineering design, or construction engineering for offshore and onshore pipelines with the most cost-effective designs is your preferred approach.

Our teams are adaptable and flexible enough to meet your needs. AVIN Engineering can assist you in reaping the benefits of EPC or design-build projects, such as reduced owner risk, increased cost controls, a single point of contact, increased cooperation, and enhanced design and construction innovation.

Our excellent safety record and strong bonding capacity enable us to work on multiple projects at the same time. Our extensive vendor and subcontractor networks, in conjunction with our pipeline engineering personnel, provide the quality you've come to expect from our teams.


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