ONGC Board approves 1.75 MMT strategic petroleum reserve project at Mangalore
New Delhi, July 10
State-run Oil and Natural Gas Corporation has approved the development of a 1.75 million metric tonne Strategic Petroleum Reserve at Mangalore, marking a major step towards strengthening India's energy security amid growing geopolitical uncertainties and rising crude oil demand.
The decision was approved by the company's Board of Directors, which accorded "an in-principle approval for the development of 1.75 MMT capacity Strategic Petroleum Reserves as a project of national importance along with associated facilities at Mangalore (Phase-I Extension) as per the directives of Ministry of Petroleum and Natural Gas (MoP&NG)," ONGC said in a stock exchange filing.
The Board also directed the company "to take up with the Government of India for broadening commercial utilisation opportunity with associated regulatory support," according to the filing.
The project comes as India continues to expand its emergency crude storage infrastructure to cushion the economy against global supply disruptions. India is the world's third-largest importer and consumer of crude oil, meeting more than 85 per cent of its oil requirement through imports, making strategic reserves an important component of its energy security architecture.
India currently has Strategic Petroleum Reserve facilities with a combined capacity of 5.33 MMT at Visakhapatnam (1.33 MMT), Mangalore (1.5 MMT) and Padur (2.5 MMT), operated by Indian Strategic Petroleum Reserves Ltd (ISPRL). The Centre has also approved an additional 6.5 MMT of commercial-cum-strategic storage at Chandikhol in Odisha (4 MMT) and Padur (2.5 MMT) as part of the next phase of expansion.
The proposed ONGC project will add another 1.75 MMT at Mangalore, expanding storage capacity at one of India's key strategic petroleum hubs on the western coast. According to recent reports, the move follows heightened concerns over global oil supply disruptions and reflects the government's push to accelerate expansion of emergency crude storage capacity.
India has in recent years also deepened international energy partnerships to strengthen its strategic reserves. The Mangalore facility already hosts crude oil stored by the Abu Dhabi National Oil Company (ADNOC) under an agreement with ISPRL, allowing part of the crude to be used commercially while retaining strategic access for India during emergencies.
More recently, during Prime Minister Narendra Modi's visit to the United Arab Emirates, ADNOC announced plans to significantly expand crude oil storage in India and also explore potential storage arrangements linked to India's strategic petroleum reserve programme, further reinforcing bilateral cooperation in energy security.
Strategic petroleum reserves are government-controlled crude oil stockpiles maintained to ensure uninterrupted supplies during geopolitical conflicts, natural disasters or sharp disruptions in global oil markets. India's expansion of these reserves is aimed at reducing vulnerability to external shocks while supporting long-term energy security as the country's fuel demand continues to grow.
— ANI
Reader Comments
Curious about the cost and timeline. 1.75 MMT is substantial but we need to ensure it's built efficiently without cost overruns. Also, hope they consider environmental impact in Mangalore—coastal ecosystems are fragile. The ADNOC partnership is smart though, using commercial storage strategically.
As someone who works in energy logistics, this is impressive. India's strategic reserve capacity is growing rapidly—5.33 MMT + 6.5 MMT planned + this 1.75 MMT. That's over 13 MMT total, which could cover roughly 10-12 days of imports. Not enough yet, but moving in right direction.
Good initiative but I hope it doesn't become another white elephant like some PSU projects. The Mangalore facility already has ADNOC storage, so they have experience. But we need to also focus on renewable energy—solar, wind, EVs—to reduce this dependence long-term. Diversification is key.
Makes sense geopolitically. India's position as a major oil importer means we're vulnerable to any supply shock—whether from OPEC cuts, sanctions, or conflicts. Having strategic reserves gives us leverage in negotiations too. Mangalore is a good location with existing infrastructure. Smart move.
I just hope the benefits trickle down to common citizens. When global oil prices spike, we still end up paying more at the pump. Strategic reserves should help stabilize prices during crises, but we need transparent mechanisms. Also, kudos to the government for thinking about energy security! 👍