New Delhi: India is looking to significantly ramp up its liquefied petroleum gas storage capacity to protect itself from global supply shocks. Bharat Petroleum
Corporation Limited Chairman and Managing Director, Sanjay Khanna, has confirmed that the country is currently evaluating various models to strengthen its energy reserves as geopolitical tensions continue to rise.
“India definitely needs more LPG storage. At this juncture, multiple options are being explored to increase capacity. We are in talks with various stakeholders and will have a plan in place within six months,” Khanna stated. His comments highlight a growing urgency to fix vulnerabilities in the country’s current infrastructure, especially given how much India relies on energy imports from West Asia.
The ongoing conflict in West Asia has made the situation more pressing. Currently, India’s LPG storage only covers about 22 days of demand. This is much lower than the 74 days of cover for crude oil and 60 days for aviation fuel. With India importing 60% of its LPG, any disruption in the Strait of Hormuz could lead to immediate domestic shortages.
Push for unified energy policy
The experts are now calling for a shift away from a “piecemeal” approach to energy planning. According to a report by S&P Global, India needs a comprehensive policy that covers everything from crude oil and LPG to natural gas and battery storage. Currently, the country has no strategic reserve for natural gas, and battery storage is still in its early stages, sitting below 2 gigawatts.
The Executive Director at S&P Global, Gauri Jauhar told ANI that the government needs to look at storage as a single, unified framework. “There has to be a much more comprehensive view of storage. It cannot just be about crude or LPG separately. It has to cut across electrons and molecules,” Jauhar explained. She believes the current global crisis should be used as a “catalyst” to speed up planning and energy transition timelines.
Strategic necessity in volatile market
The heavy dependence on imports nearly 90% for crude and 50% for natural gas means India is highly exposed to price swings and supply cuts. Jauhar noted that crises often provide an opportunity to “reset and compress timelines” for what is truly urgent. For BPCL and other state-run firms, the next six months will be crucial in deciding how to build a buffer that can keep Indian kitchens running even if global supply lines are hit.
