India has initiated the development of its first strategic natural gas storage system, a direct policy response to the supply shocks triggered by the recent West Asia crisis.
Public sector oil companies are currently evaluating technical options for the infrastructure, including underground salt caverns and cryogenic tanks, to build a buffer against future import disruptions.
The move comes as markets digest the immediate aftermath of the Strait of Hormuz tensions.
While the crisis caused significant volatility in global energy prices, India’s energy sector has largely insulated domestic consumers from the worst of the shock.
The government recently withdrew emergency restrictions on natural gas supplies, reversing measures implemented earlier this week to manage acute shortages.
This reversal signals that liquefied natural gas (LNG) imports have stabilized sufficiently to meet immediate demand without rationing.