India's gas regulator pitches for building natural gas storage

(Reuters) - India should build storage for natural gas to boost the use of cleaner fuel in the country and hedge against global price volatility, A. K. Jain, chairman of the Petroleum and Natural Gas Regulatory Board, said on Monday.

He said India should have natural gas storage that allows suppliers to build stocks when prices are low. That will also help in meeting higher demand from the industries, he added.

"For market dynamics and supply assurance for the customers to shift to gas, (we) require gas storage," Jain told reporters at an event.

India has 5 million tons of strategic petroleum reserves but no storage facilities for natural gas yet.

The country aims to raise the share of natural gas in its energy mix to 15% by 2030, from about 6.5% now.

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