India's strategic gas storage: LNG buffer mandate for terminals in the works

AI Summary

India is considering a mandate requiring LNG terminal operators to increase strategic gas storage capacity to mitigate supply risks exposed by disruptions through the Strait of Hormuz amid the Iran conflict. This plan aims to build strategic gas reserves to enhance energy security.

The disruption to LNG shipments through the Strait of Hormuz during the Iran conflict highlighted India's exposure to supply disruptions, prompting the government to revisit the idea of creating strategic gas reserves. Policymakers are evaluating a plan under which LNG terminal operators would be required to expand storage capacity at their existing import facilities.