ONGC board approves 1.75 million-tonne expansion of strategic crude oil storage in Mangaluru

AI-Generated Summary

4 sources

2 hours ago

1 views

ONGC board approves 1.75 million-tonne expansion of strategic crude oil storage in Mangaluru — Photo: Swarajya

Key Points

ONGC’s board approves adding 1.75 million tonnes of strategic crude oil storage capacity at Mangaluru, Karnataka.
The expansion increases capacity managed by ISPRL, the government entity maintaining India’s strategic crude reserves.
ISPRL currently operates underground storage at three coastal locations with a combined capacity of 5.33 million tonnes, and two additional projects are under development (expected +6.5 million tonnes).
Multiple reports describe the decision as aimed at strengthening energy security amid risks from geopolitical disruptions affecting oil supply chains.
ONGC has not reported the estimated cost or completion timeline in the cited disclosures.

State-owned Oil and Natural Gas Corporation (ONGC) has approved a proposal to expand India’s strategic crude oil reserves by adding 1.75 million tonnes of storage capacity at Mangaluru (Mangalore), Karnataka, according to regulatory disclosures cited by multiple outlets. The projects cleared by the ONGC board will increase the capacity managed by Indian Strategic Petroleum Reserves Limited (ISPRL), the government-owned entity responsible for maintaining strategic crude reserves. Current ISPRL underground storage facilities operate at three locations on India’s eastern and western coasts with a combined capacity of 5.33 million tonnes, while two additional storage projects are described as under development and expected to add a further 6.5 million tonnes.

Several reports link the decision to lessons from recent geopolitical disruptions, including risks highlighted during the Iran conflict and disruptions affecting global oil supply routes. The Mangaluru initiative is described by ONGC as being of “national importance” and is expected to include related infrastructure development in line with directions from India’s Ministry of Petroleum and Natural Gas. One outlet notes ONGC has not disclosed the estimated cost or project timeline. The company may leverage existing infrastructure links with its subsidiary Mangalore Refinery and Petrochemicals Ltd. (MRPL).

How Outlets Covered This Story

SWA

Swarajya

ONGC Approves 1.75-Million-Tonne Strategic Oil Reserve Expansion Project To Strengthen India’s Energy Security 1 hour ago

FRE

Free Press Journal

ONGC Approves Expansion Of Strategic Oil Reserves With New Mangalore Storage Facility

State-owned Oil and Natural Gas Corporation (ONGC) has approved a major expansion of India’s strategic crude oil storage capacity as the country moves to strengthen energy security following disruptions caused by the Iran conflict.The board of India’s largest oil and gas producer has cleared a proposal to add 1.75 million tonnes of strategic oil reserve capacity at Mangalore in Karnataka, according to a regulatory filing. The company has not disclosed the estimated cost or timeline for completing the project.The additional storage will increase the capacity managed by Indian Strategic Petroleum Reserves (ISPRL), the government-owned entity responsible for maintaining the country’s strategic crude reserves.Currently, ISPRL operates underground storage facilities at three locations along India’s eastern and western coasts, with a combined capacity of 5.33 million tonnes. Two additional storage projects are under development and are expected to add another 6.5 million tonnes of capacity.India imports a significant share of its crude oil requirements from the Persian Gulf region. The near shutdown of the Strait of Hormuz during the Iran conflict exposed vulnerabilities in global energy supply chains and forced oil-importing nations to explore alternative sources.ONGC’s decision marks the first instance of a government-owned company using its own funds to develop strategic crude storage infrastructure. Earlier, state-run refiners and oil producers primarily focused on building commercial storage facilities rather than strategic reserves. India Holds Oil Reserves For Up To 80 Days Of Consumption: Petroleum Minister Hardeep Singh PuriONGC described the Mangalore project as being of “national importance” and said it would also develop related infrastructure at the site in line with directions from the Ministry of Petroleum and Natural Gas.The government aims to build crude oil, liquefied natural gas and petroleum gas reserves sufficient to cover up to one month of domestic demand. To achieve this goal, authorities have encouraged public-private partnerships while also urging state-run energy companies to expand commercial and strategic storage capacities.ONGC may utilise its existing infrastructure links with subsidiary Mangalore Refinery and Petrochemicals Ltd. (MRPL), which operates a 300,000-barrel-per-day refinery in Karnataka, for the new storage facility.The existing Mangalore strategic storage facility has attracted international participation, with companies including Abu Dhabi National Oil Co. (ADNOC), the UAE’s largest oil producer, leasing storage space there.The expansion is expected to improve India’s ability to manage future supply shocks, reduce vulnerability to geopolitical disruptions and strengthen long-term energy resilience.

1 hour ago

BUS

Business Line - Home

ONGC approves project to expand strategic crude reserves

The ONGC board has approved the addition of 1.75 mt of capacity in Mangaluru

3 hours ago

BUS

Business Standard

ONGC approves strategic oil reserve expansion after Iran war exposes risks

The ONGC board gave the green light to add 1.75 million tons of capacity in Mangalore, Karnataka, to national crude reserves, according to a filing

3 hours ago