State-run Oil and Natural Gas Corporation (ONGC) has secured board approval to develop a 1.75 million metric tonne (MMT) Strategic Petroleum Reserve (SPR) at Mangalore, significantly bolstering India's energy security infrastructure. The decision, announced through a stock exchange filing, comes as the nation grapples with growing geopolitical uncertainties and rising crude oil demand.
Project Details and National Importance
ONGC's Board of Directors granted "in-principle approval for the development of 1.75 MMT capacity Strategic Petroleum Reserves as a project of national importance along with associated facilities at Mangalore (Phase-I Extension) as per the directives of Ministry of Petroleum and Natural Gas (MoP&NG)," the company stated in its filing. The board also directed ONGC "to take up with the Government of India for broadening commercial utilisation opportunity with associated regulatory support."
India, the world's third-largest crude oil importer and consumer, meets over 85% of its oil requirements through imports. This heavy reliance on foreign oil makes strategic reserves a crucial component of the nation's energy security architecture.
Expanding India's Strategic Petroleum Reserve Network
India currently operates SPR facilities with a combined capacity of 5.33 MMT at Visakhapatnam (1.33 MMT), Mangalore (1.5 MMT), and Padur (2.5 MMT), managed by Indian Strategic Petroleum Reserves Ltd (ISPRL). The central government has also approved an additional 6.5 MMT of commercial-cum-strategic storage at Chandikhol in Odisha (4 MMT) and Padur (2.5 MMT) as part of the next expansion phase.
The proposed ONGC project adds another 1.75 MMT at Mangalore, expanding storage capacity at a key strategic petroleum hub on India's western coast. This move follows heightened concerns over global oil supply disruptions and reflects the government's push to accelerate emergency crude storage expansion.
International Energy Partnerships
India has deepened international energy partnerships to strengthen its strategic reserves. The Mangalore facility already hosts crude oil stored by Abu Dhabi National Oil Company (ADNOC) under an agreement with ISPRL, allowing commercial use of the crude while retaining strategic access for India during emergencies. During Prime Minister Narendra Modi's visit to the UAE, ADNOC announced plans to significantly expand crude oil storage in India and explore potential storage arrangements linked to India's strategic petroleum reserve programme, further reinforcing bilateral energy security cooperation.
Strategic Importance of Petroleum Reserves
Strategic petroleum reserves are government-controlled crude oil stockpiles maintained to ensure uninterrupted supplies during geopolitical conflicts, natural disasters, or sharp disruptions in global oil markets. India's expansion of these reserves aims to reduce vulnerability to external shocks while supporting long-term energy security as the country's fuel demand continues to grow.
