The new Mangaluru facility will strengthen India’s energy security and add nearly three days of crude oil storage capacity.
Key Highlights
- ONGC will develop a 1.7 million-tonne (MT) strategic crude oil reserve in Mangaluru, Karnataka.
- The project has been approved by ONGC’s board following directions from the Ministry of Petroleum and Natural Gas.
- The new facility will add crude oil storage equivalent to nearly three days of India’s oil requirement.
- India currently has 5.3 MT of strategic crude reserves across Mangaluru, Padur and Visakhapatnam under Phase-I.
- The government is also expanding strategic petroleum reserves under Phase-II with new storage facilities in Odisha and Karnataka.
New Delhi: State-owned Oil and Natural Gas Corporation (ONGC) has approved the development of a 1.7 million-tonne (MT) strategic crude oil reserve at Mangaluru in Karnataka, as India moves to strengthen its energy security against future global supply disruptions.
The proposal was cleared by ONGC’s board following directions from the Ministry of Petroleum and Natural Gas. The company described the project as one of national importance and will also develop the associated infrastructure required for the storage facility.
The new underground reserve will increase India’s emergency crude oil storage capacity by nearly three days of national crude oil consumption. The move comes as geopolitical tensions and global energy supply uncertainties continue to highlight the importance of maintaining strategic petroleum reserves.
Under Phase-I of the Strategic Petroleum Reserve (SPR) programme, India created 5.3 million tonnes of underground crude oil storage across Mangaluru (1.5 MT), Padur (2.5 MT) in Karnataka and Visakhapatnam (1.3 MT) in Andhra Pradesh. These reserves are managed by Indian Strategic Petroleum Reserve Limited (ISPRL).
The government is also implementing Phase-II of the SPR programme, which includes an additional 6.5 million tonnes of storage capacity at Chandikhol in Odisha and Padur in Karnataka.
ONGC’s board has also approved a proposal to seek regulatory changes that would allow broader commercial utilisation of the strategic reserve while ensuring the government retains priority access during any national energy emergency.
According to government estimates, India currently maintains crude oil, petrol and diesel stocks sufficient for around 74 days, including approximately nine days of strategic crude reserves stored in underground facilities.
