India may expand LNG storage to manage future supply crises, Pg25

Key Highlights:

• Petronet LNG plans to increase its cryogenic LNG tank capacity by about 70% due to supply disruptions caused by the closure of the Strait of Hormuz.
• The Indian government is considering increasing LNG storage capacity to mitigate geopolitical and supply shocks.
• India relies on imports for about half of its natural gas needs, with 60% of those imports passing through the Strait of Hormuz.
• Petronet LNG has eight LNG tanks at its Dahej terminal and two at its Kochi terminal, and plans to add more at both locations.

Detailed Insights:

• The Strait of Hormuz closure has halted LNG cargo from the Persian Gulf for over two months, impacting supplies to India.
• The government prioritized natural gas supplies to critical sectors like transportation and households due to import pressures.
• Additional LNG storage could buffer against unforeseen supply disruptions like the Strait of Hormuz blockade.
• India currently has 23 LNG tanks across its terminals, primarily for continuous operations rather than emergency stockpiles.
• Building cryogenic LNG tanks is expensive and takes at least three years after pre-project activities and approvals.
• Petronet LNG's Gopalpur terminal project will add two tanks, and the firm is planning to add another tank at the Kochi terminal.

Key Concepts Involved:

• LNG (Liquefied Natural Gas): Natural gas converted to liquid form for ease of storage and transportation.
• Cryogenic Tanks: Specialized storage containers designed to hold substances at extremely low temperatures.
• Strait of Hormuz: A narrow waterway that is a critical route for global oil and gas shipments from the Persian Gulf.