India Plans New Strategic Oil Storage Project in Mangalore

India is set to strengthen its energy security with plans to develop a new 1.75 million-tonne Strategic Petroleum Reserve (SPR) in Mangalore, led by Oil and Natural Gas Corporation (ONGC). The proposed project comes after recent concerns over global oil supply following disruptions to shipping through the Strait of Hormuz, one of the world's most important crude oil transit routes.

ONGC intends to seek government approval to allow the new storage facility to be used for commercial purposes whenever required in the national interest, providing greater flexibility in managing the country's crude oil reserves.

At present, India operates strategic crude storage facilities in Mangalore, Padur, and Visakhapatnam, with a combined storage capacity of 5.33 million tonnes, managed by Indian Strategic Petroleum Reserves Ltd. In Mangalore, half of the existing 1.5 million-tonne storage capacity is leased by Mangalore Refinery and Petrochemicals Ltd. (MRPL), while the remaining capacity is leased to Abu Dhabi National Oil Company (ADNOC).

The new Mangalore project forms part of India's long-term strategy to expand its emergency crude oil reserves and strengthen energy partnerships with countries such as the UAE and Japan. In addition to this project, India is planning another 4 million-tonne strategic storage facility in Chandikhol, Odisha, along with a 2.5 million-tonne expansion at Padur. Earlier this year, ADNOC also announced plans to increase its crude oil storage capacity in India to as much as 30 million barrels.

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