India’s largest oil exploration company, Oil and Natural Gas Corporation (ONGC), will develop a new strategic petroleum reserve (SPR) facility in Mangalore with a storage capacity of 1.75 million metric tonnes of crude oil.
The proposed facility, equivalent to around 13 million barrels of oil, is aimed at strengthening India’s emergency energy preparedness and reducing vulnerability to global supply disruptions.
ONGC announced the project through a stock exchange filing, stating that it would seek approval from the central government for commercial utilisation of the storage facility in the national interest.
Strengthening India’s Energy Security
India, the world’s third-largest oil importer and consumer, relies heavily on crude imports to meet its energy needs. Recent disruptions, including the blockade of the Strait of Hormuz during the Iran conflict, highlighted the importance of maintaining adequate emergency oil reserves.
Around one-fifth of global energy supplies pass through the Strait of Hormuz, making it a critical route for international oil shipments.
The new Mangalore facility will add to India’s strategic storage network and provide additional flexibility during global supply shocks.
Existing Strategic Reserves In India
India currently operates strategic petroleum reserves at three locations: Mangalore, Padur and Visakhapatnam, with a combined storage capacity of 5.33 million tonnes of crude oil.
These facilities are managed by the government-owned Indian Strategic Petroleum Reserves Ltd (ISPRL).
A portion of the existing storage capacity is already available for commercial use. Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of ONGC, has leased half of the existing 1.5 million tonne Mangalore reserve, while the remaining capacity is leased to Abu Dhabi National Oil Company (ADNOC) of the United Arab Emirates.
India Expands Global Oil Partnerships
India is also strengthening energy cooperation with countries such as the UAE and Japan to improve its emergency crude storage network.
During Prime Minister Narendra Modi’s visit to the UAE, ADNOC announced plans to increase crude oil storage capacity in India to up to 30 million barrels.
The UAE has also explored the possibility of additional crude storage facilities at Fujairah as part of India’s strategic reserve expansion plans.
More Storage Projects Planned
Along with the new ONGC facility in Mangalore, India is planning additional strategic petroleum reserves across the country.
The government has proposed a 4 million tonne storage facility at Chandikhol in Odisha and another 2.5 million tonne facility at Padur in southern India.
The expansion of strategic reserves is expected to improve India’s ability to manage international oil supply disruptions and strengthen long-term energy security.
