Whalesbook
Why India is Expanding LPG Storage
India's oil companies are speeding up plans for new liquefied petroleum gas (LPG) storage. The move is driven by the conflict in West Asia and the resulting uncertainty over supply chains. This effort aims to secure cooking fuel for over 33 crore consumers.
Shielding Against Import Disruptions
India imports about 60% of its LPG needs, with roughly 90% coming from West Asia and passing through the Strait of Hormuz. The current geopolitical tensions highlight how vulnerable these supply routes are. This is why oil companies are fast-tracking plans to boost storage capacity. The Prime Minister's Office is also tracking this initiative, showing its national importance.
Current Storage Facilities
India currently has two underground LPG storage caverns with a total capacity of 1.4 lakh tonnes. Hindustan Petroleum Corporation Limited (HPCL) runs an 80,000-tonne facility in Mangaluru. Additionally, South Asia LPG, a joint venture of HPCL and TotalEnergies Marketing Holdings India, operates a 60,000-tonne cavern in Visakhapatnam. These sites are among the safest for storing the propane-butane mix.
Wider Energy Security Efforts
The government is also focusing on crude oil storage. Plans for new Strategic Petroleum Reserves (SPR) in Odisha and Karnataka are being accelerated. These efforts, along with scouting for more crude oil reserve locations, are part of a larger plan to ensure energy security and greater independence in managing resources.
Ensuring Stable Fuel Supply
Increasing storage capacity helps India build resilience against global supply disruptions and the potential use of energy as a weapon. By building up domestic reserves, India aims to protect its economy and consumers from unstable international markets and geopolitical unrest, ensuring a more reliable supply of essential fuels.