India Expands LPG Storage Push Amid Supply Security Concerns

India needs to significantly expand its liquefied petroleum gas (LPG) storage infrastructure to strengthen long-term energy security and reduce vulnerability to global supply disruptions, according to Bharat Petroleum Corporation Limited Chairman and Managing Director Sanjay Khanna. Speaking amid rising geopolitical tensions and concerns over energy supply stability, Khanna said multiple options are currently being evaluated to increase the country’s LPG storage capacity. He added that discussions are underway with various stakeholders and a detailed expansion plan is expected to be finalised within the next six months.

The comments come at a time when India’s energy sector is facing renewed pressure due to instability in West Asia and the broader global energy market. The recent conflict involving the United States and Iran has intensified concerns over disruptions in crude oil and LPG supply chains, especially for countries like India that rely heavily on imported fuel. Industry experts believe the situation has highlighted the urgent need for stronger domestic reserves and improved infrastructure to ensure uninterrupted energy availability during periods of international uncertainty.

According to BPCL officials, expanding LPG storage capacity is essential not only for emergency preparedness but also for managing the country’s rapidly growing domestic demand for cooking gas. India has witnessed a sharp rise in LPG consumption over the past decade due to increasing household penetration and government-backed clean cooking fuel initiatives. However, storage capacity growth has not always kept pace with consumption patterns, raising concerns about the country’s ability to handle sudden supply interruptions or unexpected spikes in demand.

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India reportedly experienced an LPG supply crunch in March following heightened geopolitical tensions and disruptions linked to the US-Iran conflict. The situation drew attention to the limitations of existing storage facilities and the risks associated with dependence on imported fuel shipments. Officials and analysts have repeatedly warned that inadequate storage reserves could create logistical challenges during crises, particularly if shipping routes, global trade flows, or refinery operations are affected by prolonged regional conflicts or economic instability.

The government and state-run oil companies are now exploring several possible models to strengthen the country’s LPG infrastructure. These may include expanding existing storage terminals, constructing underground caverns, increasing coastal storage facilities, and improving transportation and distribution networks. Industry observers say strategic storage expansion could help India maintain stable fuel supplies, reduce price volatility, and improve resilience against external shocks in international energy markets.

Energy security has increasingly become a major policy priority for India as the country seeks to balance economic growth with rising energy requirements. Experts believe that building larger strategic reserves for LPG and other fuels will be crucial in supporting industrial activity, household consumption, and national preparedness during emergencies. With discussions ongoing between BPCL and multiple stakeholders, the coming months are expected to play an important role in shaping India’s future energy storage strategy and strengthening the resilience of its fuel supply systems.

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