India needs two-three gas storage facilities to protect against high prices, avoid supply disruptions: IGL
India needs at least two or three underground gas storage facilities in order to insulate the country from unusual increase in global gas prices and hedge against supply disruptions, Kamal Kishore Chatiwal, managing director of gas utility Indraprastha Gas (IGL), told NGV India Summit 2023 that was held in New Delhi on July 20 and 21.
India is one of the largest importers of LNG in the world, with almost half of its annual gas demand being met through imported LNG. IGL, based in New Delhi, is responsible for supplying natural gas as cooking and vehicular fuel to customers in the Delhi National Capital Region. Established in 1998, the company operates as a joint venture between state-owned gas marketing company GAIL, state-owned refiner Bharat Petroleum, and the government of Delhi National Capital Region.
Chatiwal emphasised that there is a strong need for gas storage solutions in India, particularly if the country continues to rely on imported gas.
“We see that there is a strong need for gas storage solutions in India. If we have to rely on imported gas then not one but two or three underground storage facilities are required,” Chatiwal said.
The underground gas storage facilities are depleted reservoirs in oil and/or natural gas fields, aquifers, and salt cavern formations. Depleted oil and natural gas reservoirs are the most commonly used underground storage sites because of their wide availability.
Currently, IGL sources about 2.2mn m3/day of imported gas in the form of regasified LNG. To manage the volatility of gas prices and supplies, the company has a diverse portfolio of contracts with various suppliers, including short-term, medium-term, and long-term agreements, Chatiwal said.