APIC ’23: Chemicals to drive most of new oil demand growth in the future – RIL exec

NEW DELHI (ICIS)–Chemicals could be responsible for 70% of new oil demand growth in the future as fuel markets slow down and gasoline consumption start to wane, a Reliance Industries Limited (RIL) senior executive said on Friday.

“Fuel markets are expected to grow not at close to just below 1% and achieve peak demand by 2030,” RIL executive director Nikhil Meswani told delegates at the Asia Petrochemical Industry Conference (APIC).

“Its my conviction that this demand might even peak earlier on new consumer preferences and young people’s choices for EVs [electric vehicles],” Meswani said.

Chemicals demand as a result of this shift towards low-emission alternatives are expected to grow at “three times the normal growth rate of fuels”, he said.

India’s annual growth rate of around 6-8% would mean that it requires sustained investments in polymers and chemicals as well as new materials, Meswani said.

“We [India] will need an average of 1m tonnes of ethylene every year for the forseeable future,” he said.

“Currently we are importing chemicals and intermediates and this is a very significant opportunity for investment dollars,” Meswani said.

The two-day APIC 2023 organized by India’s Chemicals & Petrochemicals Manufacturers’ Association (CPMA) ends Friday.