- Wednesday, February 26, 2025
Despite possessing five million tonnes of strategic petroleum reserves, India currently lacks dedicated storage facilities for natural gas.
By: Shubham Ghosh
INDIA is embarking on the establishment of its inaugural strategic natural gas reserves by repurposing antiquated hydrocarbon wells to serve as storage units, thus fortifying itself against potential disruptions in global supply, as disclosed by a high-ranking executive from GAIL (India) Ltd, a prominent natural gas company on Friday (24).
Sumit Kishore, an executive director at GAIL, shared this development during a press briefing at an industry event in New Delhi, outlining the phased construction of these strategic facilities in India’s western and northeastern regions. The initial storage capacity is anticipated to reach three to four billion cubic meters (bcm) of gas.
Despite possessing five million tonnes of strategic petroleum reserves, India currently lacks dedicated storage facilities for natural gas. Presently, Indian companies collectively maintain two bcm of gas within pipelines and liquefied natural gas tanks for commercial use. Kishore highlighted that the construction of the first strategic gas storage facility would span three to four years post the necessary government approvals.
India’s overarching goal is to elevate the proportion of natural gas in its energy portfolio to 15 per cent by the year 2030, a substantial increase from the current 6.2 per cent.
With an annual gas consumption of approximately 60 bcm, the establishment of strategic reserves represents a pivotal step towards ensuring energy security and bolstering India’s resilience in the face of global dynamics impacting the natural gas sector.
