India Energy Storage: India's strength and preparedness in the energy sector has kept the panic button pressed till now, whereas, in countries like Pakistan, a lockdown-like situation is being seen.

India's underground cave in Mangalore

India Energy Storage: The war between Iran and Israel has exposed India's energy situation. India imports approximately 90% of its crude oil, 60% of LPG, and 50% of LNG needs from other countries. This dependence on imports can put India in trouble if a sudden disruption in the supply chain occurs, as has recently happened due to Iran's sanctions on the Strait of Hormuz. However, it is equally true that India has gained strength in the energy sector over time.

Whether it's underground storage or diversifying oil imports, India is gradually strengthening its energy security. In a crisis, in addition to its strategic oil reserves, its stock of petrol and diesel can last another 25 days. India's existing cooking gas, or LPG, can last approximately 25-30 days, while LNG, primarily used for industrial purposes, is available for approximately 10 days. This strength in India's energy sector has helped press the panic button, while countries like Pakistan are experiencing lockdown-like conditions.

The Many Benefits of Underground Storage

India has several underground gas storage facilities. The oldest of these is the Visakhapatnam cavern, built about 10 years ago by the Indian Strategic Petroleum Reserves Limited. These caverns can hold a total of 5.33 million metric tons (40 million barrels) of crude oil, enough to meet the country's needs for about 10 days.

Such underground facilities are beneficial because they are protected from external attacks, such as drone strikes, and natural disasters. Furthermore, they are less expensive to operate, and being underground, these caverns are less vulnerable to fire or oil spills. The government has not yet utilized these reserves. When needed, they provide a strategic buffer, giving the government time to arrange for other imports.

Oldest storage facility in Visakhapatnam

The full name of this underground storage facility is South Asia LPG Company Private Limited. This underground storage facility, located near Dolphin Hills, is a 50:50 joint venture between HPCL (Hindustan Petroleum Corporation Limited) and French giant TotalEnergies. It has been in use since 2007. Its gas storage capacity is 60,000 metric tons. This cavern stores a large portion of HPCL and TotalEnergies' LPG. Additionally, companies like Indian Oil and Bharat Petroleum also utilize the storage capacity here when needed.

Underground cave in Mangalore

Built for HPCL, this storage facility has a capacity of 80,000 metric tons, enough to meet the needs of millions of households for a month. It was built by Megha Engineering and will be fully operational by September 2025. After importing LPG from Saudi Arabia, Kuwait, the United Arab Emirates, the United States, Russia, Iraq, Qatar, and Nigeria, HPCL stores it in this cavern and then sends it via pipeline to cities like Bengaluru, Hyderabad, and Mysore.

This is about LPG storage. India also has three large caverns for storing crude oil. One is in Visakhapatnam, the second in Mangalore, and the third in Padur.