Davos (Switzerland): Indian Oil Corporation (IOC) Chairman Arvinder Singh Sahney has stated that American sanctions on Russia and potential future punitive actions under the new Trump administration will have “limited effect” on India, given the country’s diversified sources of energy. Speaking to media from Davos, Sahney emphasized that India is well-positioned to meet its energy demands.
“It is not a very difficult thing to handle because it has a very limited effect. Whatever sanctions are there, we are abiding by them,” Sahney remarked, noting the country’s numerous energy supply alternatives. “We have OPEC, we have OPEC+, we have other than OPEC, and we have the Gulf,” he added, reinforcing India’s strong energy supply network.
President Donald Trump had warned of economic consequences for Russia, including “taxes, tariffs, and sanctions,” after assuming office, while the previous Biden administration had already imposed heavy sanctions on various Russian entities due to the ongoing conflict in Ukraine.
Sahney also mentioned that besides OPEC, India has secured energy sources from other regions. “Other than OPEC, we have Guyana, Brazil, the US itself now that our government is also willing to go ahead with that and increase our exposure to US crude also,” Sahney explained. “So we have enough options available, so there is no issue as far as supplies of crude to India are concerned.”
When asked about the future outlook for international crude prices, Sahney predicted that prices would remain range-bound between USD 75 to USD 80 per barrel, with a bias towards USD 75. “It has already gone up and I have, although I have an interest in seeing them on the lower side, but still, as per my assessment and as for the assessment of my company, whatever we have done in detail, we see that it will remain range bound from 75 to 80 and more so towards 75,” he said. As of now, international crude prices are trading at approximately USD 75.5 per barrel.
On city gas distribution (CGD) network expansion, Sahney highlighted that IOC’s focus is on ongoing projects. “We already have around 47 GAs (geographical areas) as standalone Indian Oil and with a couple of our JV partners, which is out of around 295-300 odd numbers,” Sahney mentioned. “We have our hands full. We have a very good chunk of CGD business that we are doing and we are trying to develop infrastructure to the extent possible.”
Regarding potential acquisitions, Sahney stated, “No. As of now, we don’t have any active acquisition plan.”
Looking ahead to green hydrogen, Sahney revealed that IOC’s Panipat plant is set to commission a green hydrogen plant within the next two years. “Hydrogen plant is now alive. We have got very good bids for it, and now the tenders are under evaluation and within a month or so we will be able to award the job and within 2 years that green hydrogen plant of 10,000 tonnes per annum capacity at Panipat will be commissioned,” he said.
India has long relied on fossil fuels to meet its energy needs, but renewable energy sources like green hydrogen are increasingly seen as crucial to reducing dependency on conventional power. India’s National Green Hydrogen Mission, launched in January 2023, aims to achieve a green hydrogen production capacity of 5 million tonnes by 2030, with an investment outlay of Rs 19,744 crores.
As the world focuses on climate mitigation, green energy has gained momentum, with India positioning itself as a key player in the global shift to cleaner energy sources.