India is making plans to establish a strategic natural gas reserve that can store up to 4 billion cubic metres (BCM) of imported gas. This reserve will serve as a backup in case of supply emergencies and help stabilize the domestic market, people familiar with the matter told ET. The decision to set up the gas reserve was given the green signal by oil minister Hardeep Singh Puri, who directed Oil and Natural Gas Corp (ONGC), Oil India, and GAIL to prepare a detailed feasibility report.
In the past, India has considered building a strategic gas storage facility as part of its energy security plan but was deterred by the high costs involved. However, the recent disruption in the global gas market due to geopolitical factors has prompted a reevaluation of this strategic policy. The targeted gas storage capacity is 3-4 BCM and is estimated to cost $1-2 billion.
