State-run Oil and Natural Gas Corporation (ONGC) has obtained in-principle approval from its Board of Directors to establish a 1.75 million metric tonne (MMT) Strategic Petroleum Reserve (SPR) in Mangaluru. This project aligns with directives from the Ministry of Petroleum and Natural Gas (MoPNG) and is deemed of national importance. The proposed facility, an extension of the Mangaluru Strategic Petroleum Reserve, will encompass necessary infrastructure, as per ONGC’s regulatory filing.
The Board has instructed ONGC to engage with the government regarding expanding commercial utilization opportunities for the strategic petroleum reserve, alongside seeking essential regulatory backing. India’s efforts to fortify its strategic petroleum reserves and enhance energy cooperation have intensified post the disruption caused by the Strait of Hormuz blockade during the Iran conflict. This strategic waterway facilitates the transit of nearly one-fifth of the world’s energy supplies.
India presently allows commercial utilization of a segment of its strategic crude storage facilities in Mangaluru, Padur, and Visakhapatnam, with a combined storage capacity of 5.33 million metric tonnes (MMT). These facilities are overseen by the government-owned Indian Strategic Petroleum Reserves Ltd. Additionally, Mangalore Refinery and Petrochemicals Ltd (MRPL), an ONGC subsidiary, operates a refinery with a capacity of 300,000 barrels per day in Mangaluru.
Half of the existing 1.5 MMT strategic petroleum reserve in Mangaluru has been leased to MRPL, while the remaining capacity is leased to Abu Dhabi National Oil Company (ADNOC). ADNOC, during Prime Minister Narendra Modi’s visit to the UAE, announced intentions to expand its crude oil storage in India up to 30 million barrels and explore crude storage at Fujairah as part of India’s strategic reserve program. India is also planning to construct an additional 4 MMT strategic petroleum reserve in Chandikhol, Odisha, and a new 2.5 MMT facility in Padur, Karnataka. ONGC has not disclosed the estimated cost or timeline for the proposed 1.75 MMT strategic petroleum reserve expansion in Mangaluru.
