Iran war pushes ONGC to plan strategic gas reserve

ONGC plans to create India’s first strategic natural gas reserve near its gas-producing assets in western India.

The reserve would cushion supply disruptions from crises like the West Asia war, as India imports about 55% of its natural gas, valued at around $15 billion annually.

The plan follows the government’s failed salt cavern storage project due to high capital expenditure and technical complexities.

ONGC will initially conduct a feasibility survey for a pilot storage using a depleted gas well, which is already suited for gas pressure and geology.

The reserve may include a portion for commercial use to develop a revenue model, as suggested by Indian Gas Exchange CEO Rajesh Mediratta.