Fluor Corporation bagged a Front-End Engineering and Design (FEED) contract from Gulf Petrochemical Industries Company (GPIC) for a new aromatics production facility in Bahrain. The project marks a significant milestone in expanding Bahrain’s petrochemical manufacturing capacity while supporting the country’s long-term industrial growth and economic diversification strategy. The new facility will enhance GPIC’s product portfolio and strengthen Bahrain’s position as a leading petrochemical manufacturing hub in the Middle East.

New Aromatics Plant to Expand GPIC’s Operations

The proposed aromatics facility will be constructed at GPIC’s integrated petrochemical complex in Sitra, which currently produces ammonia, urea, and methanol. By adding aromatics production to its existing operations, GPIC aims to diversify its product mix and create greater value across the downstream petrochemical supply chain. Furthermore, the expansion will improve the company’s competitiveness in both regional and international markets.

Fluor to Deliver Front-End Engineering and Design

Fluor will provide comprehensive Front-End Engineering and Design (FEED) services for the project. During the FEED phase, the company will define the project’s engineering scope, technology integration, cost estimates, and overall execution strategy. Consequently, this phase will establish the technical foundation required before construction and project implementation begin.

Plant to Produce 1.2 Million Tons of Paraxylene

The new aromatics facility will utilize commercially proven process technologies to manufacture approximately 1.2 million metric tons of paraxylene per year and 0.5 million metric tons of benzene per year. Both products are essential building blocks for the global petrochemical industry and play a vital role in manufacturing a wide range of industrial and consumer products.

Key Feedstocks for High-Value Industries

Paraxylene serves as the primary raw material for producing Purified Terephthalic Acid (PTA), which is extensively used in the manufacture of polyester fibres, PET bottles, food and beverage packaging and packaging materials.

Meanwhile, benzene is a critical feedstock for producing:

Plastics

Synthetic rubber

Detergents

Pharmaceuticals

Specialty chemicals

As global demand for advanced materials continues to rise, the new facility is expected to support industries such as packaging, textiles, automotive, construction, and consumer goods.

Investment to Strengthen Bahrain’s Petrochemical Value Chain

The aromatics project represents a strategic investment that will reinforce Bahrain’s downstream petrochemical industry. By expanding domestic production of high-value chemicals, the facility will reduce dependence on imports, improve supply chain resilience, and create new opportunities for downstream manufacturing investments linked to aromatics production. In addition, the project is expected to contribute to Bahrain’s broader objective of developing a diversified and sustainable industrial economy.

Fluor Reaffirms Commitment to Project Excellence

Pierre Bechelany, Business Group President of Energy Solutions at Fluor Corporation, said the project demonstrates GPIC’s confidence in Fluor’s expertise in delivering complex petrochemical projects while maintaining high engineering standards and execution excellence. He added that Fluor will work closely with GPIC throughout the FEED phase to advance one of Bahrain’s key industrial development projects and support the Kingdom’s long-term economic diversification plans.

Enhancing Regional Competitiveness

Once completed, the aromatics plant will significantly expand GPIC’s manufacturing capabilities by adding paraxylene and benzene production to its existing portfolio. The project is also expected to stimulate future downstream investments, strengthen Bahrain’s petrochemical value chain, and improve the company’s competitive position in regional and global petrochemical markets. As reported by themachinemarer.com, the investment reinforces Bahrain’s ambition to become a leading producer of high-value petrochemical products while supporting sustainable industrial growth and long-term economic development.

Engineers India Limited (EIL) successfully completed the comprehensive upgrade of Oil and Natural Gas Corporation’s (ONGC) Advanced Training Institute (ATI) in Goa, transforming it into a world-class energy training hub. The modernization project reinforces India’s commitment to developing highly skilled professionals for the oil, gas, and energy sectors while supporting future-ready workforce development. The upgraded institute combines advanced technical infrastructure with modern learning facilities, making it one of the country’s premier centres for energy training, safety education, and management development.

State-of-the-Art Facilities Enhance Learning Experience

As part of the transformation, EIL has developed several cutting-edge training and educational facilities that provide practical, hands-on learning opportunities for energy professionals. These include Fully Equipped Rig Facility, Wellhead Platform, Viewing Gallery, Sea Survival Training Centre, Convention Centre, Management Development Facility and Exhibition Hall. Together, these world-class facilities significantly strengthen India’s training infrastructure by enabling professionals to acquire advanced technical knowledge, operational expertise, and leadership skills in a realistic learning environment.

Boosting Technical Skills and Operational Safety

The upgraded Advanced Training Institute is designed to improve competency across multiple disciplines within the oil and gas industry. In addition to technical training, the institute places strong emphasis on operational safety, emergency preparedness, and management excellence. Consequently, the enhanced campus will help prepare engineers, technicians, and industry leaders to meet the evolving challenges of the rapidly changing energy landscape while promoting safer and more efficient operations.

A Milestone for India’s Energy Education Ecosystem

The successful completion of the project marks a significant milestone in strengthening India’s energy education ecosystem. By creating a modern training environment equipped with industry-leading facilities, EIL has contributed to building a highly skilled workforce capable of supporting the country’s growing energy ambitions. Moreover, the upgraded ATI will serve as a centre of excellence for continuous learning, professional development, and knowledge sharing across the oil and gas sector.

EIL Demonstrates Engineering Excellence

Engineers India Limited stated that the project reflects the company’s engineering expertise and unwavering commitment to developing world-class infrastructure for India’s energy industry. By delivering this landmark upgrade, EIL has once again demonstrated its capability to execute complex infrastructure projects that align with the evolving needs of the nation’s energy sector and contribute to long-term capacity building.

Supporting India’s Energy Future

The modernization of ONGC’s Advanced Training Institute highlights the growing importance of advanced training infrastructure in driving innovation, operational excellence, and workforce development. As reported by psuconnect.in, as India’s energy sector continues to expand, facilities such as the upgraded ATI will play a vital role in preparing professionals with the skills required to support safe, sustainable, and efficient energy operations.

Emerson, a global player in industrial automation, announced that its Ovation™ Green supervisory control and data acquisition (SCADA) software is powering operations at Adani Green Energy Limited’s (AGEL) 3.55 gigawatt-hour (GWh) Battery Energy Storage System (BESS) in Khavda, Gujarat. The project is recognized as the world’s largest single-location battery energy storage deployment outside China and represents a significant milestone in India’s clean energy transition. Developed as part of AGEL’s integrated renewable energy ecosystem, the project also ranks among the fastest utility-scale battery storage installations completed globally.

Adani Green Accelerates India’s Renewable Energy Growth

As India’s largest renewable energy company, Adani Green Energy Limited currently operates more than 20 gigawatts (GW) of renewable energy capacity. Looking ahead, the company aims to expand its operational portfolio to 50 GW by 2030. In addition, AGEL plans to commission over 10 GWh of battery storage during FY2027 and scale its battery storage capacity to 50 GWh over the next five years. This ambitious expansion will strengthen grid resilience, improve renewable energy integration, and support India’s growing clean energy requirements.

Ovation Green SCADA Enables Intelligent Plant Operations

At the heart of the project is Emerson’s Ovation Green SCADA software, which delivers advanced supervisory control, real-time monitoring, and comprehensive data management through a single integrated platform. The scalable automation system provides operators with instant access to critical operational data, enabling them to maximize energy output, maintain grid stability, improve asset utilization, enhance operational efficiency and ensure safe and reliable plant operations. By integrating control and plant-wide data into one platform, Ovation simplifies complex energy storage operations while supporting dependable power delivery.

Advanced Automation for a Landmark BESS Project

AGEL selected Emerson as its automation partner for this flagship project, deploying Ovation Green SCADA together with the Ovation 4.0 software release and OCR3000 controllers. The automation platform coordinates millions of data points across: Power Conversion Systems (PCS), Battery Management Systems (BMS), High-voltage switchboards and Grid Remote Terminal Units (RTUs). As a result, the system ensures seamless equipment integration, grid compliance, operational reliability, and high-performance energy management. Notably, the majority of the project’s 3.55 GWh battery storage capacity is managed through Emerson’s Ovation platform.

Supporting India’s Clean Energy Future

Anil Bhatia, Vice President and Managing Director, Emerson India, said, “Emerson is proud to be part of India’s clean energy journey with Adani Green Energy. Our Ovation Automation Platform has long been trusted for mission-critical control in India’s power sector. With this successful gigawatt-scale deployment, Ovation software has proven to be the right platform for every form of power generation—from conventional thermal plants to large-scale renewable energy storage.”

Delivered in Just 10 Months

One of the project’s most remarkable achievements is its execution speed. The 3.55 GWh BESS facility at Khavda was completed within just 10 months from the start of on-site construction, setting a new global benchmark for rapid deployment of utility-scale battery energy storage systems. Furthermore, Emerson’s Ovation platform combines advanced automation with large-scale data processing in a unified, scalable architecture. Consequently, the system helps maximize renewable energy output, maintain grid reliability, and support uninterrupted delivery of clean electricity.

Strengthening India’s Energy Transition

The successful deployment of Emerson’s automation technology at the Khavda BESS project highlights the growing role of digital control systems in enabling large-scale renewable energy infrastructure. As per the press release, as India rapidly expands its renewable energy capacity, intelligent automation platforms such as Ovation will play a crucial role in ensuring grid stability, operational efficiency, and reliable integration of battery energy storage systems.

Mahanadi Coalfields Limited (MCL) signed a Memorandum of Understanding (MoU) with Talcher Fertilizers Limited (TFL) for the safe, scientific and environmentally responsible utilisation of fly ash generated from TFL’s upcoming coal gasification-based Ammonia-Urea Project at Talcher. The partnership aims to establish an efficient fly ash management system while supporting sustainable mining practices and scientific mine reclamation.

Supporting Sustainable Mine Reclamation

Under the agreement, fly ash generated from the fertilizer plant will be utilised for scientific mine reclamation and other environmentally beneficial applications. The initiative will help reduce the environmental footprint of fly ash disposal while restoring mined-out areas through scientifically planned reclamation activities. At the same time, it will encourage the productive utilisation of industrial by-products instead of conventional disposal methods.

Aligned with Environmental Regulations

The MoU has been designed in accordance with the guidelines issued by the Ministry of Environment, Forest and Climate Change (MoEF&CC) for fly ash utilisation and environmental protection. By adopting scientific disposal practices, both organisations aim to ensure regulatory compliance while promoting responsible environmental stewardship across their operations.

Strengthening Sustainability in Coal and Fertilizer Sectors

The collaboration reflects the shared commitment of MCL and TFL to reduce the ecological impact of fly ash generation and disposal. Furthermore, the partnership demonstrates how closer cooperation between the coal and fertilizer industries can transform industrial waste into a valuable resource, contributing to circular economy principles and sustainable industrial development.

A Model for Responsible Waste Utilisation

As reported by indianmasterminds.com, the MCL-TFL partnership is expected to serve as a benchmark for sustainable fly ash management in India. By combining modern technology, scientific utilisation methods and responsible mining practices, the initiative aims to improve waste management, support environmental conservation and promote sustainable resource utilisation across the energy and process industries. The collaboration also reinforces the growing emphasis on integrating environmental responsibility with industrial growth, creating long-term value for both the economy and the environment.

The Board of Directors of Gujarat Alkalies and Chemicals Limited (GACL) granted in-principle approval for setting up an additional Hydrochloric Acid (HCl) Synthesis facility at its Dahej manufacturing complex in Gujarat. The proposed project will involve an estimated investment of ₹55 crore. The new facility forms part of GACL’s ongoing strategy to strengthen its integrated chemical manufacturing operations while improving production efficiency at its Dahej facility.

Project to Enhance Caustic Soda Production Efficiency

The proposed HCl synthesis unit is designed to improve chlorine utilisation, enabling GACL to optimise caustic soda production at the Dahej complex. By converting surplus chlorine into hydrochloric acid, the company aims to maximise resource utilisation, enhance operational efficiency and create greater value across its manufacturing chain.

Supports Upcoming Phosphoric Acid Plant

The project will also complement GACL’s previously approved Phosphoric Acid Plant at Dahej. The hydrochloric acid produced from the new synthesis unit will serve as a critical raw material for the phosphoric acid facility. Consequently, the project will strengthen backward integration, reduce dependence on external supplies and improve operational synergies between the two plants.

Integrated Manufacturing Strategy

With the addition of the HCl synthesis unit, GACL continues to expand its integrated manufacturing infrastructure at Dahej. The company expects the project to improve chlorine utilisation efficiency, optimise caustic soda production, ensure a reliable supply of hydrochloric acid for phosphoric acid manufacturing, strengthen integration across its chemical value chain and enhance long-term operational and cost efficiencies.

Project Moves to Implementation Phase

The project is currently at the Board approval stage. Going forward, GACL will undertake detailed engineering, obtain statutory and environmental approvals, initiate procurement activities and commence construction in accordance with the project schedule. As reported by projectstoday.ai, once commissioned, the new HCl synthesis unit is expected to play a key role in supporting GACL’s integrated growth strategy and enhancing the operational efficiency of its Dahej manufacturing complex.

Fertilisers and Chemicals Travancore Ltd. (FACT) has temporarily suspended ammonium sulphate production following severe disruptions in the global supply chain and a sharp rise in raw material prices triggered by geopolitical tensions. The shortage of key inputs, particularly sulphur and phosphoric acid, has forced the company to curtail operations. Despite the production halt, the company has assured that fertilizer availability for farmers will remain unaffected, as the government has significantly increased imports to bridge the supply gap.

Government Steps in to Secure Fertilizer Supply

Anticipating potential shortages, the Ministry of Fertilizers directed the import of ammonium sulphate to ensure uninterrupted availability during the Kharif 2026 season. FACT has also strengthened its import programme by procuring essential fertilizers from overseas. According to the company, imported consignments of ammonium sulphate and diammonium phosphate (DAP) have already arrived, while shipments of NPK 15:15:15 and Muriate of Potash (MoP) are expected to reach India next month. As a result, fertilizer stocks are currently adequate to meet farmers’ requirements.

NP Fertilizer Production Also Curtailed

Besides suspending ammonium sulphate production, FACT has also reduced the production of NP fertilizers due to the limited availability of captive phosphoric acid and restricted sulphur supplies. The company has suspended production of approximately 25,000 tonnes of ammonium sulphate per month. To offset the shortfall, FACT imported around 30,000 tonnes of ammonium sulphate last month and plans to increase imports further until raw material supplies stabilize.

Global Crisis Disrupts Raw Material Supply

S. Sakthimani, Chairman and Managing Director of FACT, said the company is facing temporary production constraints due to extraordinary global developments. According to him, the ongoing geopolitical tensions in West Asia, combined with severe climate-related disruptions, have significantly affected the international supply chain for critical fertilizer raw materials. He noted that soaring global sulphur prices and the shutdown of several overseas phosphoric acid manufacturing facilities have created an unprecedented shortage of sulphur and phosphoric acid in international markets.

Suppliers Fail to Honour Contracts

The supply situation has worsened as several international suppliers have been unable to fulfil their long-term contractual commitments. In addition, FACT’s recent tenders for sulphur procurement failed to attract any bids, while domestic availability remains insufficient to support normal production. These developments have significantly constrained the company’s ability to source essential raw materials for fertilizer manufacturing.

FACT Expands Imports and Diversifies Sourcing

To minimise the impact of the supply disruption, FACT has accelerated imports of essential fertilizers while actively exploring alternative domestic and international sources of raw materials. At the same time, the company is working closely with the Central Government to restore normal production at the earliest. Looking ahead, FACT is also developing long-term strategic sourcing arrangements to strengthen supply security, reduce dependence on volatile global markets and safeguard operations against future geopolitical and commodity-related disruptions.

Outlook Remains Positive

Although global supply chain disruptions have temporarily affected domestic fertilizer production, proactive government intervention and increased imports are expected to ensure uninterrupted fertilizer availability during the current agricultural season. As reported by thehindubusinessline.com, with alternative sourcing strategies and long-term supply security measures underway, FACT aims to resume normal production once the availability of sulphur and phosphoric acid improves.

Himadri Speciality Chemical Ltd. unveiled two downstream expansion projects worth ₹240 crore to strengthen its presence in high-value speciality materials. The company will establish India’s first carbon nanotube (CNT) manufacturing facility and simultaneously expand its super speciality carbon black (SSCB) business to cater to fast-growing global industries. The two projects are expected to support Himadri’s long-term strategy of becoming a key supplier of advanced materials for electric vehicles, electronics, aerospace and engineered plastics.

India’s First Carbon Nanotube Manufacturing Facility

As part of the expansion, Himadri will invest around ₹70 crore to set up a 200 tonnes per annum (TPA) carbon nanotube manufacturing facility in West Bengal. The plant is scheduled to be commissioned in the fourth quarter of FY27. The facility will be the first carbon nanotube manufacturing unit in India, placing Himadri among a select group of global CNT producers currently concentrated in Japan, China and Europe. Initially, the project will operate as a pilot plant. Once the technology stabilises and commercial operations are validated, the company plans to increase production capacity in line with market demand.

Indigenous Technology Developed In-House

A major highlight of the project is that the carbon nanotube technology has been developed entirely through Himadri’s in-house research and development efforts. Anurag Choudhary, CEO of Himadri Speciality Chemical, said, “We have successfully developed indigenous carbon nanotube (CNT) technology through our in-house innovation and R&D, marking another milestone in our innovation journey. Backed by a planned capex of around ₹70 crore, our upcoming 200 TPA CNT facility, targeted for commissioning in Q4 FY27 in Bengal, is expected to place Himadri among a small group of global manufacturers serving this high-growth market. This will be a pilot plant, and once stabilised, we will expand.”

Super Speciality Carbon Black Project

Alongside the CNT facility, Himadri will invest ₹170 crore in a Super Speciality Carbon Black (SSCB) project. The new facility will convert 6,000 tonnes per annum from the company’s existing production streams into premium speciality carbon black products. Commercial operations are expected to begin by the fourth quarter of FY28. The SSCB products will primarily cater to applications in engineered plastics, speciality polymers, conductive materials and other performance-driven industrial sectors.

Meeting Growing Demand for Advanced Materials

Both projects are designed to capitalise on the rapidly growing global demand for advanced materials. Carbon nanotubes possess exceptional mechanical strength, electrical conductivity and thermal performance, making them indispensable in several next-generation technologies, including lithium-ion batteries, electric vehicles, semiconductors, electronic components, sensors, conductive coatings, aerospace materials and advanced composites. With worldwide lithium-ion battery demand expected to increase sharply over the next decade, CNTs are emerging as a critical material for improving battery efficiency, durability and charging performance.

Growth Strategy and Market Outlook

Through these investments, Himadri aims to diversify beyond conventional carbon products into higher-margin speciality materials. The company expects the new businesses to play an important role in achieving its long-term financial targets. Himadri has projected revenue of ₹30,000 crore over the next five years, while targeting a net profit of ₹1,100 crore by FY28. The integrated carbon black platform, combined with indigenous CNT technology, is expected to strengthen the company’s competitive position in both domestic and international markets.

Future Growth Depends on Successful Scale-Up

The carbon nanotube facility represents a strategic milestone for India’s advanced materials sector. If the pilot plant achieves stable commercial operations, Himadri will be well-positioned to expand production and meet rising demand from electric vehicle battery manufacturers and export markets. At the same time, the SSCB project is expected to generate additional value through niche, high-margin applications, providing a balanced growth path as the company scales its new energy materials business. As reported by msn.com, with these investments, Himadri is positioning itself at the forefront of India’s emerging advanced materials ecosystem while reducing dependence on imported carbon nanotube technology.

Coal India Limited (CIL) announced plans to invest nearly ₹1,900 crore in research and development (R&D) by FY2030, reinforcing its commitment to modernising mining operations, improving sustainability, and developing next-generation energy technologies. The announcement reflects the company’s strategic shift towards innovation as India’s energy sector undergoes rapid transformation. By strengthening its research capabilities, Coal India aims to enhance operational efficiency while supporting cleaner and more sustainable mining practices. The company intends to elevate its R&D efforts to accelerate long-term growth and technological transformation.

NaCCER Becomes the Centrepiece of R&D Strategy

A significant milestone in Coal India’s innovation journey was the establishment of the National Centre for Coal and Energy Research (NaCCER) during FY2025. Designed on a hub-and-spoke model, NaCCER serves as the central research platform that coordinates innovation across Coal India’s businesses. As a result, the company has shifted its focus beyond proof-of-concept studies and is now concentrating on Technology Readiness Level (TRL)-4 and above, which includes prototype development and technology validation. This transition enables Coal India to accelerate the commercial deployment of emerging technologies.

R&D Spending Quadruples in FY2025

Coal India’s renewed emphasis on innovation is reflected in its R&D expenditure. The company increased its research spending from ₹61 crore in FY2024 to ₹245 crore in FY2025, representing a four-fold increase. This investment also aligns with the Department of Public Enterprises’ guideline requiring Central Public Sector Enterprises (CPSEs) to allocate, on average, one percent of the previous three years’ profit before tax towards research and development. To support this long-term vision, Coal India has introduced a comprehensive R&D policy aimed at institutionalising innovation across the organisation.

Strategic Partnerships with Leading IITs

To strengthen industry-academia collaboration, Coal India has established three Centres of Excellence (CoEs) at premier Indian Institutes of Technology.

These include:

Centre of Clean Coal Energy and Net Zero (CLEANZ) at IIT Hyderabad

Centre for Sustainable Energy (CSE) at IIT Madras

Innovation in Mining (IMiN) at IIT (ISM) Dhanbad

These centres function as research spokes under NaCCER and focus on pilot-scale research, prototype development, and technology validation. Furthermore, Coal India has committed ₹253 crore to support these Centres of Excellence, with funding scheduled to be released in phases.

Multiple Research Projects Underway

Coal India is currently executing 19 R&D projects under NaCCER with a combined investment of ₹225 crore. In parallel, the three Centres of Excellence are carrying out 13 additional research projects involving pilot-scale studies and prototype development. Together, these initiatives are expected to accelerate technology adoption across mining and energy operations.

Research Focuses on Clean Energy and Sustainable Mining

Coal India’s research portfolio addresses several strategic priorities that combine operational excellence with environmental sustainability. In addition, the Innovation in Mining (IMiN) centre at IIT (ISM) Dhanbad is developing advanced mining technologies while promoting capacity building through specialised research fellowships.

Building a Future-Ready Coal and Energy Company

With an investment of ₹1,900 crore planned by FY2030, Coal India is positioning research and innovation at the core of its future strategy. By combining indigenous R&D, academic collaboration, international partnerships, and advanced technology development, the company aims to transform traditional coal mining into a smarter, more efficient, and environmentally sustainable enterprise. As reported by ndtvprofit.com, as India advances its clean energy transition while maintaining energy security, Coal India’s expanding innovation ecosystem is expected to play a crucial role in shaping the future of the country’s mining and energy sectors.

Oil and Natural Gas Corporation (ONGC) is planning to establish India’s first strategic natural gas reserve near its gas-producing assets in western India. The proposed project is designed to strengthen the country’s energy security and protect against global supply disruptions caused by geopolitical conflicts. The initiative follows the government’s earlier proposal to develop underground natural gas storage in salt caverns, which did not progress due to high capital investment requirements and significant technical challenges. Instead, ONGC is now evaluating alternative storage solutions that are more cost-effective and technically viable.

Strategic Gas Storage Gains Importance

The proposal comes at a time when geopolitical tensions in West Asia have highlighted the vulnerability of global energy supply chains. India currently imports nearly 55% of its natural gas requirements, with annual imports valued at approximately US$15 billion. Consequently, disruptions in international gas supplies can significantly impact the country’s energy security, industrial production, and fuel availability. A strategic natural gas reserve would provide an emergency buffer, enabling the country to maintain critical gas supplies during periods of geopolitical instability or supply shortages.

ONGC Evaluates Depleted Gas Fields for Storage

ONGC plans to begin with a pilot project to assess the feasibility of storing natural gas in depleted gas reservoirs. According to the company, depleted gas fields offer several advantages. Since they have previously contained natural gas, their geological formations are already capable of safely handling high-pressure gas storage. Moreover, much of the required infrastructure already exists, reducing both development time and capital expenditure. The company is currently conducting feasibility studies to identify suitable depleted reservoirs for the project.

Alternative Storage Options Under Consideration

Besides depleted gas fields, underground aquifers are also being evaluated as potential storage sites. Aquifers are deep, porous rock formations containing water. By injecting natural gas at high pressure, the water can be displaced, allowing the gas to be stored securely beneath an impermeable rock layer until it is needed. Although aquifer storage is technically feasible, industry experts generally consider depleted gas fields to be the preferred option because they require less investment and present lower geological risks.

Strategic Reserve Complements Existing Crude Oil Storage Plans

The proposed gas reserve follows ONGC’s recent announcement to develop a 1.75-million-ton strategic crude oil storage facility. India already maintains 5.2 million tons of strategic petroleum reserves to safeguard against disruptions in crude oil supplies. Establishing a strategic natural gas reserve would further diversify the country’s emergency energy infrastructure and strengthen its long-term energy resilience.

Industry Recommends a Hybrid Commercial Model

Energy industry experts believe the proposed gas storage infrastructure could also generate commercial value. Rajesh Mediratta, Managing Director and Chief Executive Officer of Indian Gas Exchange (IGX), suggested that part of the storage capacity should be allocated for commercial operations while reserving the remainder exclusively for emergencies. For example, if a storage facility has a capacity of 5 billion cubic metres (BCM), around 2 BCM could be actively traded and replenished under a commercial model, while the remaining 3 BCM would remain available for strategic use during national emergencies.

According to Mediratta, this hybrid approach has been successfully implemented in several European countries and helps create a sustainable revenue model for storage infrastructure. He also emphasized that depleted gas fields remain the most practical option because they utilize existing infrastructure and significantly reduce capital expenditure compared with underground salt caverns.

Experts Call Strategic Gas Storage a National Priority

Industry experts agree that India should accelerate the development of strategic natural gas storage facilities. Manas Majumdar, Partner and Oil and Gas Leader at PwC India, noted that countries such as the United States, China, Germany, and several European nations have already established large-scale strategic gas storage systems to enhance energy security and manage supply disruptions. He emphasized that India should adopt similar long-term infrastructure to strengthen the resilience of its natural gas sector.

LNG Import Dependence Highlights Urgency

Although India has successfully diversified its crude oil imports over recent years, the same flexibility is not available for Liquefied Natural Gas (LNG). Global LNG supplies are concentrated among a limited number of major exporters, including Qatar, the United Arab Emirates, the United States, and Angola. As geopolitical tensions continue to affect shipping routes and energy markets, India’s dependence on imported LNG has become a growing concern. One of the most critical shipping routes is the Strait of Hormuz, through which a significant portion of global LNG exports passes. Recent shipping data from S&P Global Commodities at Sea showed a sharp decline in vessel movements through the strait, underscoring the vulnerability of global gas supply chains during periods of regional conflict.

Building Long-Term Energy Resilience

As India’s natural gas consumption continues to grow across industries, power generation, fertilizers, and city gas distribution, ensuring reliable fuel availability has become increasingly important. As reported by thehindubusinessline.com, by developing strategic natural gas storage infrastructure, ONGC aims to reduce supply risks, improve emergency preparedness, and strengthen India’s long-term energy security. If successfully implemented, the project could become a critical component of the country’s evolving energy strategy while supporting greater resilience against future geopolitical and market disruptions.