Around 7 bcm of LNG reserves likely to rein in fuel price volatility

Estimate based on similar proportion of reserves in developed countries

The volatility in the fuel market induced by the Covid-19 pandemic has prompted India to look at strategic reserves for its liquefied natural gas (LNG) market. While the country would need around 7 to 8 billion cubic metres (bcm) of reserves to successfully mitigate price volatility, the lower share of natural gas in the country’s energy mix could put a question mark on the viability of such reserves.

The estimate of 7-8 bcm of LNG reserves is based on similar reserves in developed economies. According to the Gas Exporting Countries Forum, the global gas storage capacity is around 417 bcm,