New Delhi, July 23 -- State-run Oil and Natural Gas Corp. Ltd, or ONGC, is planning to create India's first strategic natural gas reserve near its gas-producing assets in western India, according to two people close to the matter.

The development comes after the Indian government's plan to store natural gas in underground salt caverns failed to take off because of high capital expenditure and technical complexities.

A strategic natural gas reserve can cushion the impact of crises such as the West Asia war, which has disrupted global energy supplies, exposing India's vulnerability as the country imports about 55% of its natural gas requirements, valued at around $15 billion annually.

The plan also follows the company's recent announceme...