·The Hindu·15 marks·250–350 wordsEconomyIR

Storage capacity alone cannot guarantee energy security. Elaborate with reference to India's Strategic Petroleum Reserve and the proposed expansion into LNG and LPG.

In this answer
  1. What the SPR achieves — and where scale falls short
  2. Storage without the enabling chain is inert
  3. The LNG–LPG expansion: new fuels, new dependencies

Energy security means uninterrupted physical availability of fuel at affordable prices. Strategic storage is only its first pillar; since India imports the bulk of its crude requirement [5], reserves must also be filled, funded, moved and replenished to translate capacity into resilience.

What the SPR achieves — and where scale falls short

  • Phase I created 5.33 MT of underground rock-cavern capacity at Visakhapatnam, Mangaluru and Padur through the SPV ISPRL, giving roughly 9.5 days of crude cover [1].
  • Phase II adds 6.5 MT at Chandikhol and Padur (outlay ~₹11,000 crore), worth about 12 more days [2] — still far below the IEA norm of 90 days of net imports [3].
  • Capacity is not stock: caverns filled only partly hold less than their design figure, so headline capacity overstates actual cover [4].

Storage without the enabling chain is inert

  • Filling and financing: Phase II uses a PPP/DBFOT model with concessionaire-owned inventory and only a government first right of refusal [2] — ownership rules decide whether oil is available in a crisis.
  • Replenishment: a drawdown helps only if stocks can be refilled at a time when global prices are spiking.
  • Evacuation: reserves must reach refineries and consumers through pipelines, tankage and shipping; a logistics bottleneck neutralises a full cavern.

The LNG–LPG expansion: new fuels, new dependencies

  • A multi-fuel expansion beyond crude, into LNG and LPG storage, is under government consideration alongside continuing efforts to strengthen the existing reserve [3].
  • LNG demands cryogenic storage and regasification terminals, while LPG delivery depends on bottling plants and city-gas networks — here distribution capacity, not storage, is the binding constraint.
  • Funding proposals based on consumer levies raise affordability and equity questions for household cooking fuel.

Strategic reserves are necessary but not sufficient: cover in days, clear ownership and drawdown rules, and evacuation infrastructure together determine security. India should pair capacity creation with supplier diversification, domestic exploration and a faster energy transition, so that storage becomes one instrument within a broader architecture of self-reliance.

Sources

  1. 1PIB — Strategic Crude Oil ReservesPhase I capacity of 5.33 MT, three cavern sites, ISPRL as implementing SPV, ~9.5 days of cover
  2. 2PIB — Cabinet approves establishment of additional 6.5 MMT Strategic Petroleum Reserves at Chandikhol and PadurPhase II capacity, ~₹11,000 crore outlay, ~12 additional days, DBFOT/PPP model and first right of refusal
  3. 3PIB — Government steps to Strengthen Strategic Petroleum Reservesongoing government measures to expand strategic storage
  4. 4IEA — Oil security and emergency response90-day net-import stockholding obligation; stocks vs. capacity distinction
  5. 5PPAC, Ministry of Petroleum & Natural Gas — Import/Export of Crude Oil and Petroleum ProductsIndia's crude import dependence
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