The volatility in the fuel market induced by the Covid-19 pandemic has prompted India to look at strategic reserves for its liquefied natural gas (LNG) market. While the country would need around 7 to 8 billion cubic metres (bcm) of reserves to successfully mitigate price volatility, the lower share of natural gas in the country’s energy mix could put a question mark on the viability of such reserves.

       The estimate of 7-8 bcm of LNG reserves is based on similar reserves in developed economies. According to the Gas Exporting Countries Forum, the global gas storage capacity is ...