Rs40m to be spent on ‘Strategic Underground Gas Storages’ project in FY 2021-22
July 31, 2021
Cognizant of the increased gas consumption especially during the winter season, the government has decided to execute a project of establishing the Strategic Underground Gas Storages (SUGS) by allocating funds amounting to Rs40 million under the Public Sector Development Programme 2021-22.
“The construction of SUGS is part of the government’s policy to improve energy security and affordability in the country,” a senior official privy to petroleum sector developments said.
He said the development of the SUGS was aimed at meeting the country’s growing domestic and commercial needs especially during peak winter months of November, December, January and February. The underground facilities would be constructed in collaboration with the Asian Development Bank (ADB). Whereas, a consortium of European oil and gas equipment companies was leading the feasibility study.