India should build more underground LPG storage caverns

A government panel in India has suggested constructing more underground rock caverns for storing liquified petroleum gas (LPG). This follows a rise in LPG demand across the country. Currently, the only operational cavern is in Visakhapatnam, holding 60,000 tonnes of LPG. Hindustan Petroleum is working on a new cavern with an 80,000-tonne capacity, expected to open this year. The committee noted that underground storage options are safer and more environmentally friendly compared to traditional surface tanks. They advised the government to explore further cavern projects where appropriate. The increased demand for LPG is largely due to the Pradhan Mantri Ujjwala Yojana (PMUY), which began in 2016. This initiative helps provide clean cooking fuel to poor households without any upfront deposit for gas connections. As of January 1, over 103 million connections have been issued under this scheme. To boost LPG consumption among PMUY beneficiaries, the committee recommended that the government promote smaller 5kg and 10kg gas cylinders. Additionally, the panel emphasized the need to expand India's strategic petroleum reserves, which currently can cover 74 days of crude oil requirements, including 9.5 days from cavern storage. The panel urged the government to aim for a global standard of maintaining 90 days of crude oil storage in the country. This step is seen as vital for enhancing the nation's energy security.