ONGC To Develop 1.75 MMT Strategic Oil Reserve In Karnataka

ONGC To Develop 1.75 MMT Strategic Oil Reserve In Karnataka Bengaluru, Jul 11 (KNN) State-run Oil and Natural Gas Corporation (ONGC) has approved the development of a 1.75 million metric tonne (MMT) strategic petroleum reserve at Mangaluru in Karnataka, marking the first instance of the country’s largest oil explorer funding such a facility. The company’s board has granted in-principle approval for the Phase-I expansion of the Mangaluru reserve project, along with associated infrastructure, in line with directions from the Ministry of Petroleum and Natural Gas. Details regarding project cost and timelines have not been disclosed. Strengthening Energy Security The move comes amid heightened geopolitical uncertainty and volatility in global oil markets, reinforcing the importance of strategic reserves in ensuring uninterrupted energy supply. India, the world’s third-largest crude oil importer, depends on imports for over 88 per cent of its oil requirements. Strategic petroleum reserves (SPR) are maintained as emergency stockpiles to cushion against supply disruptions or sharp price fluctuations. Expansion of Existing Infrastructure The proposed facility will be developed as an extension of the existing strategic reserve at Mangaluru and will add 1.75 MMT to the country’s storage capacity. India currently maintains about 5.33 MMT of strategic crude storage across facilities at Visakhapatnam, Mangaluru and Padur, managed by Indian Strategic Petroleum Reserves Ltd (ISPRL). The government has also approved a second phase of expansion, including additional capacity at Padur and a new facility at Chandikhol in Odisha. Commercial Use and Partnerships ONGC has indicated that it will engage with the government to explore broader commercial utilisation of the facility, subject to regulatory approvals. The Mangaluru site already hosts crude stored by the Abu Dhabi National Oil Company under arrangements that allow partial commercial use while retaining strategic access. Outlook Recent global developments, including disruptions in key oil transit routes, have highlighted the vulnerability of supply chains for import-dependent economies. The expansion of India’s strategic petroleum reserves is part of ongoing efforts to enhance energy security while supporting rising domestic demand. (KNN Bureau)