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India's Oil and Natural Gas Corporation (ONGC) plans to develop a 1.75 million metric tonne (MT) strategic petroleum reserve (SPR) in Mangaluru as part of the country's efforts to strengthen energy security. The proposed facility will add to India's existing emergency crude storage capacity and may also be used for commercial purposes after obtaining government approval. The move comes as India continues to expand its strategic reserves following recent global supply disruptions and deepen energy partnerships with countries such as the UAE and Japan to improve crude oil storage and supply resilience.
India's largest oil and gas explorer, Oil and Natural Gas Corporation (ONGC), plans to build a 1.75 million metric tonne (MT) national strategic petroleum reserve (SPR) in Mangaluru, Karnataka. The company disclosed the proposal in a stock exchange filing after receiving approval from its board.
The planned reserve forms part of India's broader strategy to strengthen its emergency crude oil storage capacity following recent geopolitical tensions that disrupted global energy supplies. The country, which is the world's third-largest importer and consumer of crude oil, faced concerns over supply security after the blockade of the Strait of Hormuz during the conflict involving Israel, the United States and Iran. Nearly one-fifth of the world's oil and energy shipments pass through this key maritime route, making uninterrupted access critical for countries dependent on crude imports.
As part of the proposal, ONGC said it would seek approval from the Central Government to allow commercial utilisation of the new storage facility in the national interest. Such an arrangement would enable the infrastructure to remain operational while also serving as an emergency reserve during supply disruptions.
India already operates strategic petroleum reserves with a combined storage capacity of 5.33 MT at Mangaluru, Padur in Karnataka and Visakhapatnam in Andhra Pradesh. These facilities are managed by Indian Strategic Petroleum Reserves Ltd. (ISPRL), a government-owned company established to build and maintain the country's emergency crude oil reserves. The government has already permitted commercial use of a portion of these underground storage facilities.
Mangaluru is also home to Mangalore Refinery and Petrochemicals Ltd. (MRPL), an ONGC subsidiary that operates a refinery with a capacity of 300,000 barrels per day. Half of the existing 1.5 MT strategic reserve at Mangaluru has already been leased to MRPL, while the remaining storage capacity is leased to Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates.
India has been expanding its energy cooperation with several countries, including the UAE and Japan, to improve crude oil security and strengthen emergency stockpiles. During Prime Minister Narendra Modi's visit to the UAE earlier this year, ADNOC announced plans to increase its crude oil storage in India to as much as 30 million barrels. The company also said it would explore the possibility of storing crude oil at Fujairah in the UAE as part of India's strategic reserve framework.
The country is simultaneously expanding its strategic petroleum storage network through new projects. Plans are already underway to develop a 4 MT strategic petroleum reserve at Chandikhol in Odisha and another 2.5 MT facility at Padur in Karnataka. Once completed, these projects are expected to significantly increase India's emergency crude storage capacity and improve preparedness against future supply disruptions.
Source Reuters
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