Outlook for oil remains extremely vulnerable to geopolitical risks: Reliance Industries Ltd
Global oil demand growth is expected to be sluggish due to higher oil prices and economic slowdown in FY 2026‑27 amid West Asia conflict, RIL said in its annual report. Crude oil has been highly volatile since March this year when the US-Israel conflict started.
RIL Chairman Mukesh Ambani has declined to draw a salary from the company for the sixth straight year. (Reuters)
Reliance Industries Ltd, a leading player in the oil and gas sector, on Thursday said the outlook for oil remains extremely vulnerable to geopolitical, macro-economic and policy risks in FY2026-27.
Global oil demand growth is expected to be sluggish due to higher oil prices and economic slowdown in FY 2026‑27 amid West Asia conflict, RIL said in its annual report. Crude oil has been highly volatile since March this year when the US-Israel conflict started.
“Refinery and oil infrastructure damages which caused product supply losses are likely to take a longer period to recover, resulting in continual volatility in the market,” RIL said. In FY 2026-27, volatile product and feedstock prices, supply disruptions from the West Asia, Government of India directives on SAED, petrochemical feedstock usage and duty exemption on key petrochemical products may weigh on domestic demand and margins, it said.
Fuel prices have gone up by Rs 8 in Mumbai in the month of May alone.
RIL said natural gas is expected to play an increasingly critical role in India’s energy transition, with its share in the energy mix targeted to rise from around 6% to 15% by 2030. “RIL’s gas portfolio remains well-positioned to support this structural shift, contributing nearly 30% of the country’s domestic gas production,” RIL said.
Continued development of deepwater and CBM assets, supported by existing infrastructure and operational efficiencies, is expected to further augment supplies and cater to India’s growing gas demand in FY 2026–27 and beyond, it said.
RIL to operationalise 40 GWh BESS capacity
RIL said its battery energy storage system (BESS) giga-factory is nearing commissioning, with the company set to operationalise 40 GWh of annual capacity—scalable to 100 GWh—as production ramps up in the second half of 2026.
BESS is a technology that stores electrical energy in batteries so it can be used later when needed. Adani Green Energy Ltd (AGEL) has already commissioned a cumulative 3.37 Gigawatt-hour (GWh) BESS this week.
According to RIL’s latest annual report, the company is progressively commissioning its HJT (Heterojunction Technology) cell and module lines.
The first 200 MWp of high-efficiency HJT modules have been delivered — demonstrating 10% higher energy yield and 25% lower degradation versus industry standards, with 720 Wp BIS — certified panels.
“Reliance remains on track to scale to 10 GWp per annum, with expansion to 20 GWp planned, targeting 26% module efficiency. Polysilicon, glass, ingots, and wafers are being commissioned in phases toward full integration,” it said.
The Dhirubhai Ambani Green Energy Giga Complex at Jamnagar is envisaged as the most integrated clean energy manufacturing ecosystem outside China, the report said.
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