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ONGC plans new strategic crude storage as India expands reserves
India’s planned reserve adds 12.8 million barrels, and ONGC would seek permission for the stockpile to be used commercially.
India’s Oil and Natural Gas Corp, ONGC, plans to build an additional strategic national crude oil reserve totalling 1.75 million tons, or about 12.8 million barrels, as part of a broader push to expand storage capacity, OilPrice reported citing Reuters.
The article says ONGC would also ask the government to allow the stockpile’s commercial use. India currently holds a national crude reserve of 5.33 million tons, about 39 million barrels, stored across three locations in the southern part of the country.
The sites are managed by Indian Strategic Petroleum Reserves Ltd, and the existing maximum reserve capacity covers only eight days of national oil demand. The decision follows a request from the government for ONGC to build and fill a new site, with an estimated investment of $1.6 billion.
OilPrice adds that the move came after an energy supply crunch that drove fuel price hikes and contributed to surging inflation in the world’s third-largest oil importer. The government is also looking at two additional facilities, including one planned at 4 million tons and another at 2.5 million tons.
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