Mangalore: The Oil and Natural Gas Corporation (ONGC) is set to strengthen India’s energy security with the development of a new 1.75 million tonne (12.83 million barrels) Strategic Petroleum Reserve (SPR) facility at Mangalore.
The new project will increase the total strategic petroleum storage capacity in Mangalore to 3.25 million tonnes (23.8 million barrels), making it a significant addition to India’s emergency crude oil storage infrastructure.
ONGC announced the development through a regulatory filing on July 9, stating that the project has been classified as a “project of national importance” under the directives of the Ministry of Petroleum and Natural Gas.
New Mangalore SPR Facility to Complement Existing Storage
The upcoming strategic reserve will be developed alongside the existing 1.5 million tonne underground crude oil cavern at Mangalore, which is operated by the Indian Strategic Petroleum Reserves Limited (ISPRL).
With this expansion, Mangalore will become a stronger hub for strategic crude oil storage, helping India manage potential disruptions in global oil supplies.
Unlike previous strategic storage projects where commercial storage infrastructure was largely developed by public sector oil marketing companies, ONGC will finance this new SPR facility through its own capital investment.
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Project Aims to Strengthen India’s Energy Security
The development of the new reserve comes at a time when global energy markets are facing increased uncertainty due to geopolitical tensions and possible disruptions in crude oil supply chains.
Strategic petroleum reserves act as a safeguard by ensuring availability of crude oil during emergencies such as:
- International supply disruptions
- Geopolitical conflicts
- Sudden fluctuations in global crude oil markets
- Major transportation route disruptions
Recent concerns around the Strait of Hormuz, one of the world’s most important oil transit routes, have further highlighted the need for stronger energy security mechanisms.
India Plans Expansion of Strategic Energy Reserves
India is among the world’s largest crude oil importers and consumers, importing more than 88% of its crude oil requirements from global markets.
To reduce vulnerability during supply shocks, the Government of India has been exploring expansion of strategic reserves for both:
- Crude oil storage
- Liquefied Petroleum Gas (LPG) reserves
The objective is to maintain sufficient energy supplies for domestic requirements during major international disruptions.
ONGC to Fund Project Through Internal Capital
ONGC will independently finance the new Mangalore SPR project through its own investment resources.
The company has not yet announced detailed information regarding:
- Project completion timeline
- Construction schedule
- Crude oil procurement strategy
- Filling and operational plans for the reserve
Further details are expected as the project moves forward.
Strategic Importance of Mangalore Location
Mangalore is considered a strategically important location for petroleum storage due to its coastal connectivity and proximity to major energy infrastructure.
The expansion of SPR capacity in the region will provide India with additional flexibility in managing crude oil supplies and strengthen the country’s ability to respond to global energy challenges.
The project is expected to play an important role in ensuring uninterrupted energy availability for India’s growing economy.
About ONGC
Oil and Natural Gas Corporation (ONGC) is India’s largest oil and natural gas exploration and production company. A Maharatna public sector enterprise, ONGC plays a key role in India’s energy sector by exploring, producing and supplying hydrocarbons while supporting the nation’s energy security goals through strategic investments and infrastructure development.
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