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Informist, Friday, Sept. 19, 2025

 

--ONGC source:In talks with Oil India, GAIL for underground gas storage unit

--ONGC source: Expecting some govt funds for planned underground gas storage
--Oil India source: Underground gas storage to help during global turmoils

--Oil India source: Underground storage to meet India's 20-day gas demand

--Oil India source: May fill 1.80 bcm gas in planned underground gas storage

 

By Anand JC

 

NEW DELHI – Three of India's premier gas companies--Oil and Natural Gas Corp. of India Ltd., Oil India Ltd., and GAIL (India) Ltd.--have sought financial assistance from the government to jointly build an underground gas storage system, people aware of the matter told Informist. The three companies have drawn up a feasibility report highlighting the contours of this strategic reserve, which will serve the country's gas needs during geopolitical conflicts, a senior official from ONGC said.

 

"India is looking for a 20-day reserve of natural gas for national security purposes to secure energy in case of a war outside (the country)," a senior official of Oil India said. A 20-day reserve is expected to help India tide over the bare minimum requirements in case of an emergency.

 

"But to build this, we will definitely need the government's support as it is an extremely expensive proposition, and I am sure they will give it," the Oil India official said. This planned underground reserve is expected to store at least 1.78-1.80 billion cubic metres of natural gas. India consumed 72.3 bcm of natural gas in 2024-25 (Apr-Mar), of which it imported 36.7 bcm.

 

"Think about the war that recently happened in the Middle East (West Asia). We were quite worried because if the Strait of Hormuz were to be shut for a few days, the ships carrying LNG (liquefied natural gas) would be stuck," the ONGC official said. When the conflict in West Asia flared up in June, India, which is a net importer of energy, was staring at a potential disruption of over one-third of its crude needs and 40% of its LNG imports from the region.

 

"To keep this uncertainty in check, we are in talks with Oil India and GAIL to make an underground gas storage system," the ONGC official said.

 

Oil Minister Hardeep Singh Puri had approved the idea of setting up a strategic natural gas reserve and had asked the three companies to prepare a feasibility report on the same, the Economic Times newspaper had reported in November 2023. The three oil companies could fill up their depleted gas reserves and turn them into storage reserves, Puri had said. However, they are also open to digging up new wells as strategic storage reserves, he added.

 

Given the expensive nature of this project, the Oil India official said he did not expect an approval from the government to come through anytime soon. "It will take time for the project to get approval, but once we get it, we will do it quickly," the official said.

 

Similar underground gas storage facilities have been built in the US and China, with both countries opting for a mix of depleted reservoirs and salt caverns.

 

The need for a reserve has become imperative amid increasing instances of geopolitical flare-ups and their potential to disrupt India's energy needs, especially when domestic production is seeing a worrying decline. India is the fourth-largest importer of LNG globally, and its imports are set to double by 2030 as demand keeps increasing, the International Energy Agency said in a report. As of 2024-end, India had a total LNG regasification capacity of 65 bcm per year across seven terminals in Dahej, Hazira, Dabhol, Kochi, Ennore, Mundra, and Dhamra, the report said. 

 

On Friday, shares of ONGC ended 0.5% higher at INR 236.69, those of Oil India ended 1.2% higher at INR 404.05, and those of GAIL India ended 0.4% higher at INR 181.65, on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

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