India building strategic oil reserves: ONGC board approves plan for 1.75-million-tonne storage capacity
As the world faces turmoil with the ongoing Middle East situation, state-run Oil and Natural Gas Corporation ( ONGC ) on Friday announced that its board has granted in-principle approval for the development of a 1.75 million tonne strategic petroleum reserve at Mangaluru, a move that will enhance India's emergency crude oil storage capacity .
As the world's third-largest importer and consumer of crude oil, India relies on imports for more than 88 per cent of its crude oil requirements. Against the backdrop of geopolitical uncertainty and fluctuations in global oil markets, strategic petroleum reserves remain a key element of the country's energy security framework.
ONGC’s Strategic Oil Reserves Move
In a stock exchange filing, the company said the proposed facility, along with related infrastructure, will be developed as the Phase-I expansion of the existing strategic petroleum reserve at Mangaluru.
ONGC did not disclose the project's cost or implementation schedule. However, it said the board has authorised the company to hold discussions with the central government on expanding the commercial use of the facility, subject to the necessary regulatory approvals.
India introduced its strategic petroleum reserve (SPR) programme to bolster the country's energy security by maintaining emergency crude oil stockpiles that can be utilised during supply disruptions or periods of sharp increases in global crude prices. These reserves are maintained in addition to the operational crude inventories held by oil marketing companies and refiners.
As the world's third-largest importer and consumer of crude oil, India relies on imports for more than 88 per cent of its crude oil requirements. Against the backdrop of geopolitical uncertainty and fluctuations in global oil markets, strategic petroleum reserves remain a key element of the country's energy security framework.
ONGC’s Strategic Oil Reserves Move
In a stock exchange filing, the company said the proposed facility, along with related infrastructure, will be developed as the Phase-I expansion of the existing strategic petroleum reserve at Mangaluru.
ONGC did not disclose the project's cost or implementation schedule. However, it said the board has authorised the company to hold discussions with the central government on expanding the commercial use of the facility, subject to the necessary regulatory approvals.
India introduced its strategic petroleum reserve (SPR) programme to bolster the country's energy security by maintaining emergency crude oil stockpiles that can be utilised during supply disruptions or periods of sharp increases in global crude prices. These reserves are maintained in addition to the operational crude inventories held by oil marketing companies and refiners.
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