ONGC Board Approves Construction of Strategic Petroleum Reserve in Mangalore
India's state-owned Oil and Natural Gas Corporation (ONGC) has authorised the construction of a 1.75 million metric tonne (MMT) Strategic Petroleum Reserve (SPR) facility in Mangalore, Karnataka. The project, classified as a national importance programme, aims to reduce India's vulnerability to global crude oil supply disruptions and market volatility.
Project Details and Capacity
The proposed 1.75 MMT SPR will add approximately 12.8 million barrels of crude oil storage capacity to India's emergency reserves. The in-principle approval was granted by the ONGC Board of Directors for the construction of the storage facility and related infrastructure. ONGC plans to seek government approvals and regulatory support to explore commercial utilisation options for the facility.
Strategic Location in Mangalore
Mangalore, located on India's western coast, is a strategically important region with existing petroleum infrastructure, including the Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of ONGC. MRPL operates a refinery with a capacity of over 300,000 barrels per day. The new SPR facility is expected to enhance crude supply efficiency and support MRPL's operations.
India's Existing Strategic Petroleum Reserves
India currently has strategic petroleum reserves with a total capacity of 5.33 MMT across three locations: Visakhapatnam (1.33 MMT), Mangalore (1.5 MMT), and Padur (2.5 MMT). The new 1.75 MMT facility will significantly expand this capacity, bolstering India's ability to maintain crude supplies during supply shocks.
Impact on Energy Security
The expansion aligns with India's long-term goal of building a robust energy security framework. According to ONGC, the project will play a critical role in protecting India's crude oil supply during geopolitical uncertainties, conflicts, or unforeseen global energy market disruptions. The enhanced storage capacity on the western coast is expected to strengthen India's resilience against international crude oil price fluctuations.
