ONGC plans India's first strategic gas reserve
The state oil producer has proposed a government-backed underground natural gas reserve after a previous salt-cavern project faced hurdles.
Mateo Fernandez ·
ONGC has proposed creating India’s first strategic natural gas reserve, officials said on July 23, 2026, a move flagged as a response to rising tensions in West Asia. Reaction pending; officials said the measure is aimed at shoring up supply security during regional disruptions.
The company framed the proposal as an alternative after an earlier plan to build underground storage in salt caverns failed to proceed because of high capital costs and technical challenges, officials said. The new proposal would be state-backed and focus on securing emergency volumes rather than commercial inventory.
Salt-cavern plan stalled
Officials said technical complexity and funding hurdles stopped the salt-cavern approach, prompting a rethink toward a strategic reserve model. Industry participants and policymakers will assess where to site capacity and how to finance construction and fill costs.
A strategic reserve would change how India buffers against supply shocks from key exporters and could alter seasonal import and regasification schedules, officials said. The proposal may affect LNG procurement patterns and pipeline planning, though exact volumes and timelines have not been disclosed.
Officials said the plan will be discussed with government ministries and the proposal could reach a formal decision by August 6, 2026. Markets and energy buyers will watch for official confirmation and details on capacity, financing and filling strategy.