India Looks to Strengthen LNG Storage Infrastructure
India is planning to increase its strategic Liquefied Natural Gas storage capacity following recent supply disruptions linked to tensions in West Asia. The interruptions affected cargo movement from Qatar, one of the country’s largest LNG suppliers, highlighting the need for stronger energy security measures and greater storage support.
The latest developments have prompted energy companies to reassess the country’s preparedness for handling prolonged disruptions in global LNG supply chains.
Supply Interruptions from Qatar Raise Concerns
The recent disruption originated from Qatar’s Ras Laffan LNG export facility, where shipments remained suspended after a force majeure declaration earlier this year.
India reportedly did not receive LNG cargoes from the facility during March and April, while supplies scheduled for May also continued to remain affected. Deliveries for June have not yet gained full clarity.
Petronet LNG, one of India’s largest LNG importers, usually receives nearly 9 to 10 LNG cargoes every month from Qatar. During the disruption period, shipping activity through the Strait of Hormuz also faced delays, further impacting LNG transportation and supply schedules.
The interruption highlighted vulnerabilities in global energy logistics and the dependence on critical international shipping routes.
New LNG Storage Tanks Planned Across India
To strengthen the country’s ability to manage future disruptions, Petronet LNG has outlined plans to expand its storage infrastructure significantly.
The company is planning to add seven new LNG storage tanks across different terminals in India. The proposed projects include:
- Two new tanks at Gopalpur in Odisha
- One additional tank at Kochi in Kerala
- Further expansion at the Dahej terminal in Gujarat
According to the company, the projects are expected to take nearly three years to complete.
The additional storage facilities are intended to provide a larger supply buffer and support continuity during periods of supply disruption or global shipping delays.
Existing Capacity Primarily Supports Operational Needs
India currently operates a limited LNG storage network primarily designed for routine import and regasification operations rather than long-duration strategic reserves.
Petronet LNG operates 10 of the country’s 23 LNG storage tanks. The Dahej terminal in Gujarat has eight tanks with an annual handling capacity of 22.5 million tonnes, while the Kochi terminal operates two tanks with a capacity of 5 million tonnes per year.
During FY26, the company handled approximately 26.5 million tonnes of LNG imports across its facilities.
Officials indicated that while existing infrastructure is adequate for normal operational requirements, it offers limited support during extended supply interruptions.
LNG Remains Critical for Multiple Sectors
Natural gas continues to play an important role in India’s energy mix. The country imports nearly half of its total gas requirements, which are used across industries including electricity generation, fertiliser manufacturing, transportation, and household consumption.
Qatar and the UAE together account for nearly 40% of India’s LNG imports, making the country significantly dependent on West Asian energy supplies.
The recent supply disruption also led to sharp volatility in LNG prices. Spot LNG prices reportedly rose to nearly $24-25 per million British thermal units before easing later to around $16.
The rise in prices and supply constraints led to reduced industrial consumption in certain segments as priority was given to essential sectors.
Focus on Energy Security and Supply Continuity
The planned expansion in LNG storage reflects India’s broader effort to improve energy security amid increasing uncertainty in global energy markets.
Strengthening storage infrastructure can help maintain stable supplies during periods of geopolitical tension, shipping disruptions, or sudden price volatility in international markets.
The move also highlights the growing importance of strategic energy planning as India continues to expand its natural gas usage across industrial and domestic sectors.
Conclusion
India’s decision to expand LNG storage capacity comes after recent disruptions in supplies from West Asia exposed limitations in existing infrastructure. With additional storage tanks planned across key terminals, the country aims to strengthen its ability to manage future supply interruptions and maintain continuity across critical sectors dependent on natural gas.
Summary
India is preparing to expand its Liquefied Natural Gas (LNG) storage infrastructure after supply disruptions from West Asia exposed limitations in the country’s ability to manage prolonged interruptions. The disruption in LNG shipments from Qatar, one of India’s major suppliers, has prompted energy companies to plan additional storage facilities across multiple locations. Petronet LNG has proposed the addition of seven new LNG storage tanks in Odisha, Kerala, and Gujarat to strengthen supply security and improve operational flexibility. The move comes as global LNG prices witnessed volatility following disruptions in shipping routes and regional geopolitical tensions. India, which imports nearly half of its natural gas requirements, is focusing on enhancing storage infrastructure to ensure uninterrupted supply for critical sectors such as power, fertilisers, transport, and households.
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