MoPNG grants approval for setting up strategic natural gas reserve

The Ministry of Petroleum and Natural Gas has granted its approval for setting up strategic natural gas reserve and has directed Oil and Natural Corporation Limited (ONGC), Oil India Limited (OIL) and GAIL (India) Limited jointly to work on its feasibility report. The report is likely to be completed by February 2024. It will recommend optimal storage model and suitability of strategic or commercial model or a mix along with providing cost estimates, probable locations, construction timelines and business and financial models for the reserves, who can invest and mode of recovering the investment. Depleted wells of ONGC and OIL could be used for the storage. Meanwhile, ONGC has already identified two such wells in Gujarat while OIL is planning to in North East. The Government of India is planning to establish strategic natural gas reserve with a capacity to store up to four billion cubic meters (bcm) imported gas at an investment of around USD1-2 billion.