India’s Energy Demand Boom Will Reshape Global Markets, Says Rosneft Chief

India will account for about half of global oil demand growth and 15 per cent of the increase in global electricity consumption over the next decade, making it one of the world's most important energy markets, Igor Sechin, chief executive of Russian oil producer Rosneft, said.

Speaking at the St. Petersburg International Economic Forum, Sechin said India's oil consumption is expected to rise 44 per cent to nearly 8 million barrels per day by 2035, while electricity demand is projected to surge 80 per cent to almost 3,000 terawatt-hours, approaching the current consumption levels in the European Union.

"Speaking of our strategic partners, I would like to specifically mention India. Today, India's economy is one of the key drivers of global energy consumption growth," he said.

According to the International Energy Agency's projections, over the next 10 years, India will account for about 15 per cent of the global increase in electricity demand. India also holds a unique position in the oil market - over the next 10 years, the country will account for approximately half of global oil demand growth.

However, he warned that the conflict around the Strait of Hormuz and broader geopolitical tensions pose risks to India's energy security, given the country's growing dependence on imported energy and its role as a key driver of global demand growth.

"The conflict in the Strait of Hormuz, along with new risks, will unfortunately have a negative impact on meeting the needs of the Indian economy," he said.

Sechin said disruptions in Hormuz extend beyond oil and gas markets, affecting fertilizer shipments and raising the risk of higher food prices, with India, Africa and Southeast Asia among the most vulnerable regions. Fertilizer prices have already risen sharply this year, he said.

He, however, said that Russia cannot be excluded from global supply chains.

"Against the backdrop of recent developments in the global oil industry, Russia's economic partnership with China and India guarantees stable supplies to both countries. Russian oil supplies bring tangible economic benefits to our partners. Since April 2022, its combined value for China and India has exceeded 40 billion dollars." Rosneft has deepened its engagement with India since 2022, becoming one of the country's largest crude suppliers as Indian refiners increased purchases of discounted Russian oil. The Russian energy major holds a 49.13 per cent stake in Nayara Energy, which operates a 20 million tonnes-per-year refinery in Gujarat and a nationwide fuel retail network.

Indian firms are also partners of Rosneft in oil and gas fields in Russia.

The Rosneft chief argued that the global economy is entering a period of heightened strategic risk marked by sanctions, supply-chain disruptions, rising debt and underinvestment in conventional energy. He said years of insufficient investment in oil and gas production, combined with rapidly growing electricity demand from artificial intelligence and data centres, could create future shortages of power and energy supplies.

Sechin also warned that growing restrictions on trade and the increasing use of sanctions were fragmenting the global economy and accelerating the development of alternative payment systems and trade routes.

He described China as the best-prepared major economy for the current environment, citing its investments in power generation, electricity grids, energy storage and transport infrastructure. China, he said, has combined rapid renewable energy expansion with continued investments in coal and nuclear power to maintain energy security and keep electricity prices competitive.

Sechin said Russia remains a critical supplier of energy to global markets, arguing that stable supplies to major consumers such as India and China will remain essential as global energy demand continues to rise.