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ONGC to build new oil storage site in Mangaluru for 13 million barrels
The project will add about 13 million barrels of capacity, with half earmarked for strategic reserves and half for ONGC’s commercial operations.
OilPrice reports India’s state-owned Oil and Natural Gas Corporation, ONGC, plans to build a new oil storage site in Mangaluru capable of holding about 13 million barrels of crude.
The expansion is aimed at improving resilience as disrupted flows at the Strait of Hormuz and the Iran war pushed India to find alternative crude supply, even as higher imports from Russia helped cushion the immediate impact.
According to the report, ONGC’s new site in Karnataka on the Arabian Sea will hold 1.75 million metric tons of oil, with half allocated to strategic storage and half reserved for ONGC’s commercial operations.
The storage project will be funded by ONGC, and the Indian Minister of State for Petroleum and Natural Gas, Suresh Gopi, told Parliament, the report adds that the government asked ONGC to build and fill the strategic reserves site with an estimated $1.6 billion investment.
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