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ONGC Funds Historic Strategic Petroleum Reserve Expansion
10 Jul
Summary
- ONGC approved a 1.75 MMT strategic petroleum reserve expansion in Mangaluru.
- This project significantly enhances India's energy security network.
- India is strengthening reserves due to recent global supply chain disruptions.
The Oil and Natural Gas Corporation (ONGC) has given in-principle approval for a 1.75 million metric tonne expansion of the strategic petroleum reserve at Mangaluru. This development is notable as it represents the first instance where ONGC, India's largest explorer, will fund the creation of a strategic crude storage facility.
The expansion will add substantial storage capacity to India's energy security infrastructure, which is crucial given recent global supply chain disruptions. The project aligns with governmental directives to bolster national energy reserves.
India is actively increasing its strategic oil storage. Additional facilities are underway in Odisha and Karnataka, aiming to secure approximately seventy-four days of oil reserves. This initiative is a direct response to the vulnerabilities in global oil supply chains highlighted by geopolitical events.
Mangaluru is already a key strategic oil storage hub, housing a large refinery operated by ONGC's subsidiary, MRPL. The existing underground caverns at the site are also leased to international firms, integrating strategic storage with commercial operations.
