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Can India build a strategic fuel system? | Explained
India’s proposed strategic-fuel programme would expand crude, LNG and LPG storage, but building reserves alone will not guarantee energy security; the system will work only if India can move the fuel through ships, pipelines and distribution networks, while having clear rules on ownership, financing, and replenishment
Context
West Asia-related disruptions have exposed a vulnerability in India's energy security, prompting the government to consider a decade-long strategic-fuel programme. The proposed plan aims to add about 28 MT of crude-oil storage, 9 MT of LNG storage, and 4 MT of LPG storage to buffer against prolonged supply shocks. This highlights the shift from merely managing operational inventory to building a robust, resilient strategic reserve system across multiple fuel types.
Exam Perspectives
Key References
AI-generated study notes · sourced from The Hindu