State-run Oil and Natural Gas Corp. Ltd (ONGC) is planning to establish India’s first strategic natural gas reserve in response to disruptions caused by the ongoing West Asia war, according to livemint.com. The initiative aims to bolster India’s energy security by cushioning the impact of supply shocks. India’s natural gas consumption is projected to reach between 297 and 365 million standard cubic meters per day (mmscmd) by 2030 and between 495 and 630 mmscmd by 2040.
The plan for the strategic reserve comes amid heightened geopolitical tensions in West Asia, which have disrupted global energy supplies. ONGC’s move is designed to mitigate risks associated with such crises by storing natural gas that can be deployed during emergencies. The company has not disclosed the exact location or capacity of the reserve but emphasized the importance of preparedness in the current volatile energy landscape.
India’s growing dependence on natural gas as a cleaner energy source has increased the urgency for a strategic reserve. Comparable to strategic petroleum reserves maintained by other countries, this gas reserve would help stabilize domestic supply and prices during international disruptions. The initiative aligns with India’s broader energy transition goals and efforts to enhance energy resilience amid global uncertainties.
ONGC’s strategic natural gas reserve plan marks a significant step in India’s energy policy. The government and ONGC are expected to finalize the project details and implementation timeline soon, with the goal of operationalizing the reserve within the next few years, as reported by livemint.com.