As the war in the Middle East intensifies, it is expected to give momentum to India's plan to set up strategic gas reserves. According to a report from
ETNow citing sources, the government is likely to speed up the process of setting up gas reserves, in line with strategic crude reserves and the crisis in West Asia. The report further added that the Oil Ministry has already prepared a draft proposal to set up strategic gas reserves. The Ministry has completed consultations with stakeholders on the proposal, and the initial proposal suggests setting up a dedicated entity on the lines of Indian Strategic Petroleum Reserves Limited, added the report. The proposal from the ministry also suggests that companies such as ONGC, GAIL and EIL will set up the entity. Additionally, storage at existing terminals was also part of the proposal, added the report, citing sources. However, not much work has been done on the proposal so far. The government is likely to expedite the process to deal with unforeseen situations in the future. Strategic reserves could help the central government to ensure price and supply stability, as per the ETNow sources. (more to come)
