India Aims to Enhance Strategic Petroleum Reserves with New Facilities in Madhya Pradesh and Rajasthan
NEW DELHI: India is set to enhance its strategic petroleum reserves by establishing new facilities in Bina, Madhya Pradesh, and Bikaner, Rajasthan, while also increasing storage capacity at Mangalore. This initiative aims to bolster the country’s energy security against potential supply disruptions. The Indian Strategic Petroleum Reserves Ltd (ISPRL) has completed feasibility studies for the Bikaner caverns and is finalizing plans for Bina.
The ISPRL is also working on a 1.7 million tonne storage facility at Mangalore, adjacent to its existing Phase-I facility. The organization has acquired 155 acres of land for this project and is seeking special economic zone (SEZ) notification for an additional 66 acres. Oil and Natural Gas Corporation will oversee the construction of the facility.
India currently maintains strategic oil reserves of 5.3 million tonnes, developed under Phase-I at Mangalore, Padur in Karnataka, and Visakhapatnam in Andhra Pradesh. These reserves can cover approximately 9.5 days of the country’s crude oil needs. Under its Phase-II expansion plan, the government is adding 6.5 million tonnes of reserves, with 2.5 million tonnes at Padur and 4 million tonnes at Chandikhol in Odisha. The projects were approved in July 2021, with land acquisition and proposal reviews underway.
The parliamentary standing committee on petroleum and natural gas has urged the ministry to ensure timely completion of these projects and to work towards achieving the global benchmark of maintaining 90 days of crude oil storage. The committee emphasized the need for finalizing requests for proposals, SEZ notifications, and financial closures within the scheduled timelines. It also recommended exploring additional cavern sites to strengthen India’s energy security amid global geopolitical uncertainties.
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