New Delhi: The standing committee on petroleum and natural gas has recommended that the Union government set up underground rock caverns for storing liquified petroleum gas (LPG) amid growing demand for LPG.
Currently, oil marketing companies (OMCs) use a 60,000-tonne capacity LPG cavern in Visakhapatnam for storing propane and butane. State-run Hindustan Petroleum Corp. Ltd is constructing another LPG cavern with a capacity of 80,000 tonnes that is expected to become operational this year.
“The committee notes that the storage of LPG in caverns offer a secure and eco-friendly way to store large quantities of gas. Underground caverns are less susceptible to natural disasters or external threats in comparison to surface storage tanks,” the standing committee said in its recommendation to the Union government.
“The committee, while appreciating the initiative of OMCs for construction of underground caverns for LPG storage, recommend the Ministry/OMCs to explore possibility of constructing more such cavern projects across the country wherever geological conditions are favourable keeping in view overall energy security of the country,” the panel added.
Domestic demand for LPG has grown in recent years due to the government’s push for its adoption under the Pradhan Mantri Ujjwala Yojana (PMUY). This scheme was launched in 2016 with an objective to provide access to clean cooking fuel to poor households across the country.
Under PMUY, deposit-free LPG connections are provided to adult women from poor households. As of 1 January, 103.3 million PMUY connections were issued across the country.
In October 2023, the Union government increased the targeted subsidy to ₹300 per 14.2 kg domestic cooking gas refill taken by PMUY beneficiaries, from ₹200 per cylinder earlier.
The committee added that to enhance the per-capita consumption of LPG among PMUY beneficiaries, the government should encourage issuance of 5kg and 10kg gas cylinders.
On strategic reserves for crude oil, the panel in its report emphasized on the need for expanding the strategic reserve capacity in the country to achieve energy security.
Indian Strategic Petroleum Reserves Ltd (ISPRL) has established strategic petroleum reserve (SPR) facilities with a total capacity of 5.33 million tonnes of crude oil at three locations—Visakhapatnam, Mangaluru and Padur.
Once completed and at full capacity, the crude oil stored in the caverns will be adequate for about 9.5 days of the country’s crude oil requirement.
In a written reply in Lok Sabha on Thursday, the minister of state for petroleum and natural gas Suresh Gopi had said that the current total national capacity for storage of crude oil and petroleum products is 74 days cover, which includes capacity of storage facilities of the OMCs of 64.5 days and 9.5 days of capacity in caverns.
“The committee would also urge upon the government to strive to achieve global standard of maintaining 90 days of crude oil storage in the country as a long-term measure,” the parliamentary panel added in its report.
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