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India to Revive Strategic Gas Reserves Plan

LNG

India is planning to set up a strategic gas reserve along the lines of its strategic petroleum reserve according to Livemint on Thursday.

  • The government is planning to use existing LNG tunnels and exhausted oil wells as well as build new underground infrastructure like the large salt caverns use for SPR.
  • The central government has revived the plan considered last year as global competition for LNG has driven prices to record levels this year.
  • India’s Gail is considering increased purchases of LNG in November although details have not yet been decided.
  • India has 5.33m tonnes (MT) of strategic oil reserve facilities in Visakhapatnam, Mangalore, and Padur.

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