State-owned Indian Strategic Petroleum Reserves Ltd (ISPRL) has prepared feasibility studies for the construction of two strategic oil reserve facilities - in Bina (Madhya Pradesh) and Bikaner (Rajasthan). This is stated in a parliamentary committee report.
According to the information, the country currently has oil storage capacity of 5.3 million tonnes. The facilities are located in Visakhapatnam (1.33 million tonnes), Mangalore (1.5 million tonnes), and Padur (2.5 million tonnes). Under construction are reservoirs for an additional 6.5 million tonnes - in Chandikhol, Odisha, and Karnataka. In addition, ISPRL is in the process of obtaining permission to build a second storage facility in Mangalore with a capacity of 1.7 million tonnes.
"The committee urged the Ministry of Petroleum to prepare requests for proposals, notifications for the creation of special economic zones, and ensure the closure of deals within set deadlines, while guaranteeing optimal use of funds. The country must, as soon as possible, meet the global standard for oil storage - a reserve of 90 days," the publication notes.
Earlier, Saudi Aramco CEO Amin Nasser suggested that in 2027 and beyond, the world will face increased oil demand due to plans by "many countries" to acquire additional strategic reserve storage capacities: "Everyone we are currently negotiating with is considering building additional storage to cope with such (as in the current Middle East crisis - FinFly) disruptions in the long term. Energy security is becoming a priority. (...) We are negotiating to find out how long it will take to build these additional storage facilities and what capabilities we have to supply products for storage."
