Energy security: What India’s crude, LPG & LNG strategic reserves strategy should look like
India is expanding its strategic petroleum reserves to reach a 90-day coverage target amid global supply chain volatility. Experts suggest a multi-tier strategy that includes physical crude reserves, operational LPG stocks, and virtual LNG contracts.
Why it matters
Energy security is critical for India's economic stability and its ability to withstand geopolitical shocks in the oil and gas markets.
India’s energy security has been in sharp focus since the start of the US-Iran conflict. The need for robust strategic reserves to counter impact of global supply disruptions cannot be overstated.India's dedicated Strategic Petroleum Reserves capacity stands at 5.33 MMT, spread across Visakhapatnam, Mangaluru, and Padur, which is equivalent to roughly 9.5 days of crude oil consumption as per PIB data released in March 2026. The government has approved the Phase II expansion of 6.5 MMT at Chandikhol (Odisha) and Padur (Karnataka) under the PPP model.Once completed, the total strategic petroleum reserves capacity will increase to 11.88 MMT, enabling India to move significantly closer to the 90-day reserve target. India is working with the UAE for 30 million barrels of crude of storage capacity.
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