India to Expand Strategic Oil Reserves to Bolster Energy Security
India’s state-owned Oil and Natural Gas Corp (ONGC) has officially announced plans to construct a new strategic petroleum reserve in Mangalore. The facility, designed to hold approximately 1.75 million metric tons or roughly 13 million barrels of crude, is a significant step toward safeguarding the nation against global supply disruptions. As the world's third-largest oil consumer, India is keenly aware of its vulnerability to bottlenecks in critical shipping lanes like the Strait of Hormuz, prompting the government to aggressively bolster its emergency stockpiles.
While ONGC has yet to finalize the timeline or total investment cost for the project, the company intends to seek federal approval to utilize a portion of the storage for commercial purposes, aligning with India's existing national strategy for its current facilities in Mangalore, Padur, and Vizag. This initiative coincides with a broader push to deepen international energy partnerships, notably with the UAE’s ADNOC, which has expressed interest in expanding storage cooperation. Alongside the Mangalore expansion, India is pushing forward with plans for additional massive reserves in Odisha and Karnataka to bridge the gap between its current stockpile and its daily refining requirements.