India is taking a proactive move toward increasing its energy security by developing a strategic natural gas reserve with a capacity of up to 4 billion cubic meters (BCM).

 

 

 

 

 

This reserve will act as a critical backup in the case of supply outages and will assist stabilize the domestic market, providing a dependable and inexpensive supply of natural gas for the country's expanding energy demands.

 

The decision to construct this strategic gas reserve was accepted by Oil Minister Hardeep Singh Puri, who asked Oil and Natural Gas Corporation (ONGC), Oil India, and GAIL to compile a detailed feasibility report. This study will detail the project's technical and economic feasibility, including the best site, design, and cost of the storage facility.

 

While India had previously pondered developing strategic gas storage facilities, the prohibitively expensive price of such projects have stymied development. However, recent volatility in the global gas market, worsened by geopolitical tensions, has highlighted the importance of energy security and India's need to diversify its gas supply sources.

The cost of achieving the planned gas storage capacity of 3-4 BCM is expected to be between $1 billion and $2 billion. While this is a hefty expenditure, the advantages of possessing a strategic gas reserve are many. In the case of a supply outage, the reserve would act as a buffer, ensuring that essential industries such as power generation, fertilizers, and petrochemicals had a constant supply of natural gas.

 

Furthermore, the strategic gas reserve would help stabilize local gas prices, insulating consumers from the volatile worldwide market changes. This price stability would promote economic growth and job creation by creating a more favorable climate for sectors that rely significantly on natural gas.

The creation of a strategic natural gas reserve demonstrates India's commitment to guaranteeing energy security and encouraging long-term economic prosperity. India is taking a proactive approach to mitigating the risks associated with global energy market volatility and ensuring the well-being of its population by diversifying its energy sources and investing in vital infrastructure.

 

Source : AFI