India explores converting old wells for natural gas storage, official
text_fields
New Delhi: A senior executive from GAIL Ltd disclosed India's plans to establish strategic natural gas reserves using depleted hydrocarbon wells.
This strategic move aims to create a reserve system safeguarding against potential global supply disruptions, addressing the absence of storage facilities for natural gas in the country.
Sumit Kishore, GAIL's executive director, revealed at an industry event that India is considering the development of these gas storage facilities in phases. The initial phase is envisioned to accommodate a storage capacity of three to four billion cubic metres (bcm) of gas, reported Reuters.
Despite having strategic petroleum reserves totaling five million tonnes, India lacks designated storage sites for natural gas. Presently, companies collectively reserve two bcm of gas in pipelines and liquefied natural gas tanks for commercial utilisation.
Kishore emphasised that the construction of the first strategic gas storage facility would require a timeline of three to four years, pending government approval.
India's ambition involves boosting the proportion of natural gas in its energy mix to 15% by 2030, compared to the current 6.2%. The country's annual gas consumption stands at roughly 60 bcm.
The initiative to repurpose old hydrocarbon wells for natural gas storage underscores India's strategic vision to fortify its energy security, balancing its energy portfolio and readiness for any potential global energy disruptions.