India to create strategic LNG reserves using existing terminal storage
India is gearing up to create strategic liquefied natural gas (LNG) reserves after recent global tensions messed with supplies coming through the Strait of Hormuz.
Instead of building new sites, the government wants existing LNG terminals to boost their storage, hoping this will make energy supplies more reliable if things get shaky again.
Terminal operators may raise regasification charges
To cover these extra storage costs, terminal operators could raise regasification charges, which could mean higher prices for consumers, and might make some terminals even less busy.
On another front, India's also mixing up where it gets its liquefied petroleum gas (LPG): the US is now its top supplier, but new deals with Argentina, Nigeria, and Malaysia are in place too.
Plus, there's a proposal for a 30-day LPG reserve on top of current stock, just in case things go sideways again.