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India to expand strategic oil reserves with two new storage sites
The new planned facilities would add capacity for both strategic and commercial stocks, extending beyond India’s current maximum reserve coverage of about eight days of national oil demand.
State-controlled Indian Strategic Petroleum Reserves Ltd (ISPRL) is finalizing feasibility studies for two new strategic petroleum reserves facilities as India looks to strengthen energy security, OilPrice reported. Indian media said ISPRL is working on a facility at Bikaner in Rajasthan and has completed a pre-feasibility study for a cavern in Bina in Madhya Pradesh.
The planned strategic reserves would be added to an existing project led by India’s state-owned Oil and Natural Gas Corporation (ONGC), the country’s top explorer. ONGC is building a storage site at Mangaluru, intended to hold about 13 million barrels of oil.
OilPrice also noted that India has been seeking alternatives after disruptions tied to the Iran war and crude flows at the Strait of Hormuz. The report said record crude oil imports from Russia have helped cushion the impact, but India still needs additional storage because its current maximum reserve capacity can cover only about eight days of national oil demand.
The ONGC storage site in Mangaluru is planned for India’s southwestern Karnataka state on the Arabian Sea, with a capacity of about 1.75 million metric tons of oil, or roughly 13 million barrels, according to the article.
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