India Plans to Expand Strategic Crude Oil Reserves to 120 Million Barrels, While Building LPG and LNG Stockpiles
Taylor Wilson
India's oil ministry has formed a committee to triple strategic crude reserves from 39 million to 120 million barrels within five years, while building LPG and LNG stockpiles almost from scratch — triggered by the Iran crisis that exposed the country's dangerous dependence on Middle Eastern energy.
Why is India rushing to stockpile now?
U.S. and Israeli military strikes on Iran led to a near-total blockade of the Strait of Hormuz, cutting off India's main Middle Eastern energy import route.
At the peak of the crisis, India was forced to ration diesel, LPG, and natural gas, and had to request emergency supplies from Japan and South Korea.
This means → India's existing reserves proved almost useless in a real supply disruption — 8 days of import cover cannot withstand a regional war.
How does India plan to expand crude reserves?
India's strategic crude stockpile currently stands at roughly 39 million barrels, covering about 8 days of imports. The target: at least 120 million barrels, more than tripling current capacity.
In plain terms = going from "8 days of buffer" to "roughly one month" — the most ambitious energy-security push India has ever attempted.
The plan calls for new underground rock-cavern storage on both coasts, expected to take about five years. Refiners and fuel retailers hold a separate 70-plus days of commercial inventory, but that stock belongs to companies and is not available for government drawdown.
How big is the LPG and LNG gap?
LPG — liquefied petroleum gas, widely used for household cooking and industry — has long-term storage capacity of only about 140,000 tonnes, enough for roughly two days of national consumption. LNG strategic reserves are virtually zero.
The oil ministry has directed state-owned refiners to begin building LPG emergency stocks. For LNG, a draft policy requires terminal operators to maintain an extra 10% of storage capacity for potential government requisition.
This means → crude reserves at least have a base to expand from. LPG and LNG must be built almost from nothing — a harder, longer task.
What are Japan and other countries doing?
The Japan Times reported that Japan and India are exploring cooperation on LNG reserves; PM Takaichi and PM Modi may reach an agreement during talks in New Delhi this week.
Singapore, Taiwan, and Pakistan are also advancing similar storage-expansion plans.
This reflects a broader shift: the Hormuz crisis is not India's problem alone — energy-security assumptions across Asia are being repriced.
Can this plan actually be delivered?
Tripling crude reserves within five years demands massive underground engineering and sustained capital commitment. India's oil ministry has not disclosed a budget or detailed timeline.
Taking LPG and LNG from near-zero to a meaningful buffer involves unresolved decisions on siting, operating models, and the mix of above-ground versus underground storage.
In plain terms = the direction is clear, but between the blueprint and delivery, India still has vast infrastructure and institutional gaps to fill.
Content is for reference only, not financial advice.