State-owned Oil and Natural Gas Corporation (ONGC) will earmark half of its upcoming 1.75 million-tonne petroleum storage facility in Mangaluru for India’s Strategic Petroleum Reserve (SPR), while the remaining capacity will be utilized for commercial operations, the Central Government informed Parliament on Monday.
The announcement was made by Minister of State for Petroleum and Natural Gas Suresh Gopi in a written reply in the Rajya Sabha, highlighting the government’s continued efforts to strengthen India’s energy security amid global geopolitical uncertainties and volatile crude oil markets.
1.75 Million-Tonne Facility to Serve Strategic and Commercial Needs
According to the government, ONGC is developing the Mangaluru storage project with a total capacity of 1.75 million tonnes, equivalent to roughly 13 million barrels of crude oil. Of this capacity:
- 50% will be reserved for India’s Strategic Petroleum Reserve (SPR).
- The remaining 50% will be available for commercial storage operations.
The project will be fully funded and developed by ONGC and is expected to significantly enhance India’s emergency crude oil storage capabilities.
Why Strategic Petroleum Reserves Matter
Strategic Petroleum Reserves are emergency crude oil stockpiles maintained by governments to protect against:
- Global supply disruptions
- Geopolitical conflicts
- Sudden spikes in crude oil prices
- Natural disasters affecting energy supply chains
These reserves help ensure uninterrupted fuel availability during crises while reducing dependence on immediate imports.
India Expanding Energy Security Infrastructure
India currently has 5.33 million tonnes of strategic crude oil storage capacity across:
- Visakhapatnam (1.33 MMT)
- Mangaluru (1.5 MMT)
- Padur (2.5 MMT)
These facilities are managed by Indian Strategic Petroleum Reserves Limited (ISPRL). The government is also expanding reserve capacity through additional projects at Chandikhol (Odisha) and Padur (Karnataka) under a commercial-cum-strategic storage model.
Commercial Storage to Improve Asset Utilisation
Besides serving national strategic needs, allocating half of the new facility for commercial operations will enable ONGC to generate revenue through crude oil storage services for refiners and other industry participants.
This dual-purpose model is designed to improve infrastructure utilization while supporting India’s long-term energy security objectives.
Key Highlights
- ONGC is developing a 1.75 million-tonne petroleum storage facility at Mangaluru.
- Half of the capacity will be reserved for India’s Strategic Petroleum Reserve (SPR).
- The remaining storage capacity will be used for commercial operations.
- The facility will strengthen India’s emergency crude oil reserves and enhance energy security.
- India currently maintains 5.33 million tonnes of strategic crude oil storage, with further expansion planned.
Source: Ministry of Petroleum and Natural Gas (Rajya Sabha reply by Minister of State Suresh Gopi), reported by Reuters and PTI.
