India wants to build strategic reserves by storing gas in exhausted wells: GAIL

25 Nov 2023

India is considering creating its first strategic natural gas reserves using old, depleted hydrocarbon wells to store fuel and protect against global supply disruptions, a senior official of GAIL (India) Ltd said. The strategic facilities will be built in phases in the western and north-eastern regions of India, with an initial capacity of three to four billion cubic meters (bcm) of gas storage, GAIL Executive Director Sumit Kishore told an event.

India has strategic petroleum reserves of five million metric tons but no storage facilities for natural gas. Indian companies currently hold two bcm of gas in pipelines and liquefied natural gas tanks for commercial use. Sumit Kishore further added that, after government approval, it will take three to four years to construct the first strategic gas storage facility. India aims to increase the share of natural gas in its energy mix to 15% by 2030 from about 6.2% currently. About 60 BCM of gas is consumed annually in the country.