Supply disruptions triggered by the ongoing conflict in West Asia have renewed discussions on developing strategic liquefied natural gas (LNG) reserves in India, with policymakers exploring the possibility of expanding storage capacity at existing LNG import terminals.
India’s total natural gas consumption is estimated at about 189 million metric standard cubic metres per day (mmscmd), of which around 97.5 mmscmd is produced domestically. The ministry of petroleum and natural gas said on Tuesday that supplies of about 47.4 mmscmd have been affected due to force majeure conditions.
To manage the immediate situation, the government issued a natural gas control order on March 9 to prioritise supplies to critical sectors. It has also said that efforts are underway to procure gas through alternative suppliers and shipping routes.
Officials said the current geopolitical tensions have highlighted the need for a longer-term strategy to improve energy security through domestic LNG storage.
“This war has given an opportunity for having strategic storage, and we are critically thinking about creating such capacity in the country, particularly at LNG terminals where additional storage tanks can be added,” said A.K. Tiwari, member (commercial) at the Petroleum and Natural Gas Regulatory Board (PNGRB).
He added that the commercial viability of such projects would need to be examined as LNG would have to be procured, stored and later sold.
Tiwari was in the city to attend an event organised by Bengal Gas Company Limited as part of PNGRB’s campaign to promote the use of natural gas across household, transport and industrial segments.
According to him, several models could be considered for creating strategic storage capacity, including joint ventures or public-private partnerships involving LNG terminal operators.
The idea has also been floated in earlier policy proposals. In a draft circular issued in October 2025, the oil ministry proposed amendments to LNG terminal registration rules requiring operators to maintain a credible plan for storage capacity, including an additional 10 per cent buffer that the government could access during supply disruptions or price shocks.