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State-run Oil and Natural Gas Corporation (ONGC) has approved the development of a 1.75 million metric tonne (MMT) Strategic Petroleum Reserve (SPR) at Mangalore, marking a major step towards strengthening India's energy security amid growing geopolitical uncertainties and rising crude oil demand.
The decision was approved by the company's Board of Directors, which accorded "an in-principle approval for the development of 1.75 MMT capacity Strategic Petroleum Reserves as a project of national importance along with associated facilities at Mangalore (Phase-I Extension) as per the directives of Ministry of Petroleum and Natural Gas (MoP&NG)," ONGC said in a stock exchange filing. The Board also directed the company "to take up with the Government of India for broadening commercial utilisation opportunity with associated regulatory support," according to the filing. The project comes as India continues to expand its emergency crude storage infrastructure to cushion the economy against global supply disruptions. India is the world's third-largest importer and consumer of crude oil, meeting more than 85 per cent of its oil requirement through imports, making strategic reserves an important component of its energy security architecture. India currently has Strategic Petroleum Reserve facilities with a combined capacity of 5.33 MMT at Visakhapatnam (1.33 MMT), Mangalore (1.5 MMT) and Padur (2.5 MMT), operated by Indian Strategic Petroleum Reserves Ltd (ISPRL). The Centre has also approved an additional 6.5 MMT of commercial-cum-strategic storage at Chandikhol in Odisha (4 MMT) and Padur (2.5 MMT) as part of the next phase of expansion. The proposed ONGC project will add another 1.75 MMT at Mangalore, expanding storage capacity at one of India's key strategic petroleum hubs on the western coast. According to recent reports, the move follows heightened concerns over global oil supply disruptions and reflects the government's push to accelerate expansion of emergency crude storage capacity. India has in recent years also deepened international energy partnerships to strengthen its strategic reserves. The Mangalore facility already hosts crude oil stored by the Abu Dhabi National Oil Company (ADNOC) under an agreement with ISPRL, allowing part of the crude to be used commercially while retaining strategic access for India during emergencies. More recently, during Prime Minister Narendra Modi's visit to the United Arab Emirates, ADNOC announced plans to significantly expand crude oil storage in India and also explore potential storage arrangements linked to India's strategic petroleum reserve programme, further reinforcing bilateral cooperation in energy security. Strategic petroleum reserves are government-controlled crude oil stockpiles maintained to ensure uninterrupted supplies during geopolitical conflicts, natural disasters or sharp disruptions in global oil markets. India's expansion of these reserves is aimed at reducing vulnerability to external shocks while supporting long-term energy security as the country's fuel demand continues to grow. (ANI)
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