New Delhi, March 4 -- India's energy regulator is moving to plug a widening hole in the country's gas supply chain as the conflict in West Asia threatens supplies of natural gas that is vital to power, fertiliser and city gas distribution networks.

According to two people aware of developments, the Petroleum and Natural Gas Regulatory Board (PNGRB) is preparing to propose overground storage facilities for natural gas near the country's existing LNG (liquefied natural gas) terminals-India currently has eight such terminals. The storage would be used for both commercial purposes and for strategic requirements during exigencies, they said.

"PNGRB may propose the government to set up storage reserves for LNG, preferably near existing termin...