Amid escalating West Asia tensions, global energy prices are surging and supply for big consumers like India is becoming a challenge. At this juncture, reserves, both commercial and strategic, of crude oil, LNG, LPG etc gain importance. Here’s an explainer on India’s reserves of critical energy components

Why is fossil fuel storage capacity, strategic or commercial, important?

The fossil fuel storage capacity is generally categorised into two – government-led or strategic reserves and refiners-led or commercial reserves. It is seen as a critical component for energy management. It protects against the inherent volatility of the energy market.

These reserves work as a buffer against supply shocks caused by geopolitical conflicts, natural disasters, and major technical failures. Having a stockpile ensures operational continuity. Importantly, it acts as a deterrent to adversaries who could use oil and gas as a political weapon or bargaining chip. The storage provides a mechanism to mitigate the financial risks associated with oil and gas price volatility.

What is the status of crude oil storage capacity in India?

According to information available as of March 2026, India maintains a combined crude oil and petroleum product buffer sufficient for approximately 74 to 90 days of national consumption. This stockpile is distributed between government-controlled strategic reserves and commercial inventories held by oil companies.

The primary emergency buffer is managed by Indian Strategic Petroleum Reserves Limited (ISPRL) across three underground rock cavern locations:

Visakhapatnam, Andhra Pradesh: 1.33 Million Metric Tonnes (MMT); Mangaluru, Karnataka: 1.5 MMT; Padur, Karnataka: 2.5 MMT. Total Strategic Capacity: 5.33 MMT, which provides roughly 9.5 days of crude oil coverage. These facilities are currently reported to be approximately 80 per cent full.

In addition to strategic reserves, Indian Oil Marketing Companies maintain substantial commercial stocks. OMCs hold storage for crude and refined products equivalent to about 64.5 days.

When combined with the SPRs, the total energy security buffer reaches roughly 74 days. Some government reports cite a broader buffer of over 250 million barrels, which could extend supply for up to eight weeks (approximately 50-60 days) depending on consumption rates.

The government has approved an additional 6.5 MMT of storage to be developed under a Public-Private Partnership model: Chandikhole, Odisha: 4 MMT facility; Padur, Karnataka: an additional 2.5 MMT facility.

Going forward, ISPRL aims to triple total capacity to 15 MMT over the next decade. New sites under consideration include Bikaner (Rajasthan), Rajkot (Gujarat), and Bina (Madhya Pradesh).

What is the status of LPG storage capacity?

As of March 18, India’s LPG storage capacity is considered critically limited, covering less than two days of national consumption, according to reports. While the country is a global leader in cooking gas distribution, its infrastructure is primarily designed for operational flow rather than long-term strategic stockpiling.

India currently relies on two major underground LPG storage caverns to manage its energy security, besides capacities held by the refiners themselves.

The Visakhapatnam, Andhra Pradesh, facility is operated by South Asia LPG Company (SALPG) (a JV between HPCL and TotalEnergies). This facility has a capacity of 60,000 metric tonnes.

The Mangaluru, Karnataka, facility has been recently completed by Hindustan Petroleum Corporation Limited (HPCL), this is India’s largest cavern with a capacity of 80,000 metric tonnes. Together, these facilities hold approximately 1.4 lakh tonnes, which meets less than two days of the nation’s average daily demand of about 90,000 tonnes.

Why has India not created large-scale strategic LPG storage?

This is primarily because its infrastructure was built for operational flow (moving gas quickly from ports to homes) rather than long-term stockpiling.

While India maintains extensive Strategic Petroleum Reserves (SPR) for crude oil, several technical, geological, and economic factors have hindered similar reserves for LPG. Until recent geopolitical tensions in the Strait of Hormuz, LPG was cheaply and abundantly available on the global market, reducing the perceived economic need for expensive storage insurance.

What is the status on creating strategic gas reserves?

New Delhi is actively transitioning from a purely operational storage model to a strategic one for natural gas. No operational Strategic Gas Reserve currently exists in the same way as the Strategic Petroleum Reserves (SPR) for crude oil.

Subsequent to the recent supply shocks and the West Asia crisis, the government has accelerated plans for a dedicated gas buffer. According to reports, the Ministry of Petroleum and Natural Gas has reportedly drafted a proposal and completed stakeholder consultations to create a dedicated entity for strategic gas reserves.

A proposal is under review to mandate an additional 10 per cent storage requirement for LNG/LPG terminals to strengthen defences against global supply shocks. Meanwhile, Engineers India Ltd (EIL) is conducting feasibility reports for six new reserve locations, including salt caverns in Bikaner (Rajasthan) which are considered ideal for gas storage.

When major countries have built or created mechanism for strategic storage, why is India lagging behind?

India’s lag in strategic LPG and natural gas storage is the result of a policy that prioritised rapid access over long-term security, combined with significant technical and geological hurdles.

Any delays in establishing crude oil strategic petroleum reserves particularly in India is primarily driven by land acquisition bottlenecks, local disputes, and administrative hurdles rather than a lack of intent.

Several Asian countries have storage mechanism to safeguard their economies against supply disruptions and geopolitical volatility. For example Japan reportedly maintains one of the largest emergency oil stockpiles globally, spread across nearly a dozen facilities, of both government as well as private and joint reserves. Reports suggest, it can sustain for approximately 146 days of net imports.

China, on its part, according to information available holds the world’s second-largest strategic storage, estimated at 511 million barrels in SPR, with plans to expand by at least 169 million barrels during 2025-2026. It covers roughly 40–50 days of imports, with a long-term goal of reaching 90 days. South Korea operates a robust storage system that includes both government and industry stocks. South Korea, reportedly is building its 6th strategic LNG facility to bolster natural gas security alongside its existing oil reserves in Ulsan and Yeosu.

Singapore, which functions as a global oil refining and trading hub, according to reports maintains approximately 32 million barrels of crude and 65 million barrels of refined petroleum products.

Published on March 19, 2026