{"id":101860,"date":"2026-05-05T12:22:47","date_gmt":"2026-05-05T06:52:47","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=101860"},"modified":"2026-05-05T12:22:47","modified_gmt":"2026-05-05T06:52:47","slug":"india-lng-storage-capacity","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/india-lng-storage-capacity\/","title":{"rendered":"India LNG Storage Capacity Boost: How India LNG Storage Capacity Boost Responds to West Asia Supply Crisis"},"content":{"rendered":"<h2><b>India LNG Storage Capacity Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India is reconsidering its energy security strategy after disruptions in liquefied natural gas (LNG) supplies caused by the closure of the Strait of Hormuz during the West Asia conflict.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The crisis has highlighted India\u2019s limited LNG storage capacity, prompting both the government and industry stakeholders to plan expansions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Petronet LNG stated that the company aims to increase its storage capacity by about 70% by adding new cryogenic tanks at terminals like Dahej, Kochi, and the upcoming Gopalpur facility.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Petronet LNG is India\u2019s largest LNG importer, established in 1998 as a joint venture by major public sector oil companies such as GAIL, BPCL, IOCL, and ONGC.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">It handles about 74\u201375% of the country\u2019s LNG imports and operates key import and regasification terminals at Dahej (Gujarat) and Kochi (Kerala).<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Currently, unlike crude oil, India has minimal LNG reserves, leading to discussions on building adequate stockpiles to better withstand future geopolitical and supply shocks.<\/span><\/li>\n<\/ul>\n<h2><b>Lessons from the Hormuz Crisis: India\u2019s LNG Vulnerability<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Heavy Dependence on Hormuz Route<\/b><span style=\"font-weight: 400;\"> &#8211; India relies on LNG imports for nearly half of its natural gas needs, with around 60% of supplies routed through the <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/strait-of-hormuz\/\" target=\"_blank\"><strong>Strait of Hormuz<\/strong><\/a>.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Supply Disruptions and Immediate Impact<\/b><span style=\"font-weight: 400;\"> &#8211; The West Asia conflict led to a near halt in vessel movement through the Strait, resulting in no LNG cargo reaching India from the <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/persian-gulf\/\" target=\"_blank\"><strong>Persian Gulf<\/strong><\/a> for over two months. This severely disrupted supply chains despite efforts to source LNG from alternative markets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Rationing and Sectoral Prioritisation<\/b><span style=\"font-weight: 400;\"> &#8211; With limited supplies, the government prioritised natural gas for essential sectors like transportation and household use, while curtailing supply to certain industries, highlighting the strain on domestic energy management.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Inadequate Storage Capacity<\/b><span style=\"font-weight: 400;\"> &#8211; India currently has <\/span><b>23 LNG storage tanks<\/b><span style=\"font-weight: 400;\">, including those operated by Petronet LNG, but these are primarily <\/span><span style=\"font-weight: 400;\">designed for operational continuity rather than emergency reserves<\/span><span style=\"font-weight: 400;\">. Each tank holds roughly one shipload, while daily consumption exceeds one tank.<\/span><\/li>\n<\/ul>\n<h2><b>Expanding LNG Infrastructure: Challenges and Way Forward<\/b><\/h2>\n<ul>\n<li aria-level=\"1\"><b>High Cost and Long Gestation Period<\/b>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Building LNG storage tanks is a complex and expensive process because they must be <\/span><b>cryogenic<\/b><span style=\"font-weight: 400;\">, capable of maintaining extremely low temperatures to keep gas in liquid form.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Each tank can take at least three years to construct after approvals, making expansion a long-term effort.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>How LNG Storage and Supply Works<\/b>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Natural gas is cooled into LNG and transported via specialised cryogenic vessels.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">It is then stored in cryogenic tanks at terminals, where it is regasified and supplied to consumers through pipelines.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Pipeline Connectivity as a Key Constraint<\/b>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Beyond storage, inadequate pipeline infrastructure limits the efficient use of LNG terminals.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Some terminals operate below capacity due to poor connectivity, restricting the evacuation of gas to end users.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Way Forward: Integrated Infrastructure Development<\/b>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Improving pipeline networks alongside increasing storage capacity will enhance utilisation of LNG terminals, strengthen supply chains, and help India build a more resilient energy system against future disruptions.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b style=\"font-size: inherit;\">India\u2019s LNG Import Shift: Diversification Amid Hormuz Disruption<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s LNG sourcing saw a sharp disruption in early 2026 as key suppliers like <\/span><b>Qatar and the UAE dropped<\/b><span style=\"font-weight: 400;\"> out due to the Strait of Hormuz crisis.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Qatar supplies plunged from 1.055 million tonnes in January to 765,000 tonnes in February and just 60,000 tonnes in March before falling to zero in April, marking a 100% decline over three months.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Similarly, UAE shipments dropped from 403,000 tonnes in January to 131,000 tonnes in March and to zero in April.<\/span><\/li>\n<\/ul>\n<h3><b>Rise of Alternative Suppliers<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In response, India rapidly diversified its import basket.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Countries like Oman, Nigeria, and Angola significantly increased shipments, while new and smaller suppliers such as Mauritania, Australia, Indonesia, Cameroon, and the Republic of the Congo entered the mix.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The United States also expanded its role, reflecting a growing reliance on spot LNG markets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Overall LNG imports stood at 1.947 million tonnes in April, up from 1.673 million tonnes in March (a 16% rise), but still significantly lower than 2.577 million tonnes in January, reflecting lingering supply tightness.<\/span><\/li>\n<\/ul>\n<p><strong>Source: <a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/india-lng-storage-hormuz-crisis-expansion-plans-10672673\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a> | <a href=\"https:\/\/www.financialexpress.com\/policy\/economy\/indias-lng-basket-resets-qatar-uae-exit-april-flows-oman-nigeria-us-gain-ground\/4231525\/\" target=\"_blank\" rel=\"nofollow noopener\">FE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India LNG storage capacity boost reflects efforts to tackle supply shocks, diversify imports, and strengthen energy security after disruptions in Strait of Hormuz.<\/p>\n","protected":false},"author":18,"featured_media":101877,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[7341,60,22,59],"class_list":{"0":"post-101860","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-india-lng-storage-capacity","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs-tag","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/101860","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=101860"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/101860\/revisions"}],"predecessor-version":[{"id":101912,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/101860\/revisions\/101912"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/101877"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=101860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=101860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=101860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}