ONGC Approves 1.75 MMT Strategic Petroleum Reserve Expansion At Mangaluru
Oil and Natural Gas Corporation (ONGC) has approved the development of a 1.75 million metric tonne (MMT) strategic petroleum reserve at Mangaluru, Karnataka, marking the first time the state-run explorer will fund the creation of a strategic crude storage facility, the company said in a regulatory filing on Thursday.The company's board accorded in-principle approval for the Phase-I expansion of the Mangaluru strategic petroleum reserve project, along with associated facilities, in line with directions from the Ministry of Petroleum and Natural Gas.
Bolstering Energy Security After Iran Conflict
The project will add 1.75 MMT of storage capacity to India's strategic petroleum reserve network, managed by Indian Strategic Petroleum Reserves Ltd (ISPRL).
India currently has 5.33 MMT of strategic crude storage across underground caverns at Visakhapatnam, Mangaluru and Padur, sufficient to meet approximately 9.5 days of the country's crude oil requirement based on 2019-20 consumption patterns.
The expansion comes as India steps up efforts to strengthen its energy security following recent geopolitical disruptions. The near-total closure of the Strait of Hormuz during the Iran conflict underscored the need for larger strategic crude inventories for import-dependent countries such as India.
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