India's Oil and Natural Gas Corp will set aside half of a planned 1.75 million metric ton storage facility in Mangaluru for the country's strategic petroleum reserve. The plan is part of a wider expansion of India's crude storage network, with new sites planned in Odisha and southern India.
India's Oil and Natural Gas Corp will reserve half of its planned 1.75 million metric ton oil storage facility for the country's strategic needs, junior oil minister Suresh Gopi told lawmakers on Monday.
ONGC, India's top oil explorer, announced plans last month to build the strategic petroleum reserve at Mangaluru in Karnataka state. The facility will hold approximately 13 million barrels of oil near where its Mangalore Refinery and Petrochemicals subsidiary operates a 300,000-barrel-per-day refinery. MRPL has leased half of the 1.5 million ton Mangaluru SPR.
Beyond Mangaluru, New Delhi is expanding its Strategic Petroleum Reserve capacity with private-sector involvement. Indian regulations permit commercial use of part of the existing SPR storage built at three locations in southern India, with 5.33 million tons of capacity, managed by the government-owned Indian Strategic Petroleum Reserves Ltd.
Gopi said India can store crude oil and petroleum products to meet 74 days of its net crude import needs, including inventories in refinery tanks, offshore facilities and its 35,000-kilometer pipeline network.
Further out, India plans to build approximately 4 million tons of strategic storage at Chandikhol in Odisha state and a new 2.5 million ton facility at Padur in southern India with private companies. ISPRL has acquired land for the Chandikhol project, which Gopi said is estimated to cost 90 billion Indian rupees, or $944.44 million.
Source: Investing.com
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