BP Chief Executive Officer Murray Auchincloss is making his third visit to India within a year, highlighting the country's increasing significance in BP's future energy strategy. This visit coincides with UK Prime Minister Keir Starmer's official trip, further underscoring the importance of the India-UK relationship in the energy sector.
India is considered a crucial market for BP, driven by the nation's rapidly growing energy demand and its commitment to diversifying its energy sources. BP's chief economist, Spencer Dale, noted that India's oil demand is projected to increase more than any other country, accounting for 12% of the global energy market by 2050. The company's Energy Outlook 2025 estimates India will consume 9.1 million barrels per day (bpd) of oil by 2050, a significant increase from the current 5.4 million bpd. Natural gas consumption is also expected to more than double, reaching 153 billion cubic meters (bcm) from the current 63 bcm.
Auchincloss's visits reflect BP's growing interest in India's upstream sector, especially given the reforms initiated by the Indian government. BP has a long-standing presence in India, primarily through its Castrol lubricant brand, and solidified its position in the exploration and production sector in 2011 by acquiring a 30% stake in Reliance Industries Ltd's KG-D6 block for $7.2 billion.
BP has invested over $12 billion across the energy value chain in India, including the development of three deepwater natural gas projects in the KG-D6 block, which contribute to one-third of India's gas production. The company's partnership with Reliance Industries extends beyond oil and gas to mobility ventures and electric vehicle (EV) infrastructure. The Jio-BP joint venture is developing a fast-charging network for EVs, focusing on providing reliable, high-speed charging solutions, including for fleet operators.
BP is also expanding its investments in clean energy in India. BP aims to harness all forms of energy in India. BP plans to introduce Lightsource BP, its solar developer, to India to scale solar development and explore bio-based collaborations. BP has invested $70 million in India's Green Growth Equity Fund (GGEF), which supports zero-carbon and low-carbon energy solutions. BP has also invested $11 million in Magenta Mobility, an electric mobility solutions provider specializing in logistics and last-mile delivery.
Kartikeya Dube, Head of Country for BP in India, highlighted the company's strategy to deepen partnerships in natural gas, mobility, and fuel retail, while also exploring opportunities in renewables, bioenergy, and carbon capture. BP is also working with ONGC to increase oil and gas production in Bombay.
BP's commitment to India is evident through its investments and strategic partnerships, positioning the company to play a significant role in meeting India's growing energy needs while also supporting its transition to a lower-carbon future.
