In a significant development, India is formulating a comprehensive strategy to establish a strategic natural gas reserve capable of storing up to 4 billion cubic meters (BCM) of imported gas. This reservoir aims to serve as a vital resource during supply emergencies and contribute to stabilizing the domestic market, according to sources familiar with the matter.
The proposal received a green signal from India’s oil minister, Hardeep Singh Puri, who has directed key entities including Oil and Natural Gas Corp (ONGC), Oil India, and GAIL to collaboratively develop a detailed feasibility report. The trio of companies is expected to submit the comprehensive report within three months.
While India has previously explored the concept of strategic gas storage as part of its energy security plan, the initiative did not progress due to perceived high costs. However, the recent geopolitical volatility in the global gas market has prompted a reconsideration of this strategic policy. The frenzy in the global gas market last year, influenced by geopolitical factors, led to disruptions in India’s gas imports and compelled certain factories to curtail production, prompting a reevaluation of the strategic gas storage proposal.
This forward-looking initiative reflects India’s commitment to enhancing energy security and ensuring a reliable supply of natural gas, especially in times of crisis. The proposed strategic gas reserve is poised to play a crucial role in mitigating potential supply disruptions and fostering stability in the domestic market, aligning with India’s broader energy security objectives.
