Why India Is Building Emergency Oil Storage??

Описание: India is now working to increase its emergency oil backup after the Iran war and global oil supply risks.

The government has reportedly asked ONGC to build a new Strategic Petroleum Reserve in Mangaluru, Karnataka. The estimated cost of this project is around ₹15,000 crore.

A Strategic Petroleum Reserve is basically an emergency crude oil storage system. It helps a country manage oil supply shocks during wars, global conflicts, shipping disruptions or sudden price spikes.

India’s current strategic petroleum reserve capacity is 5.33 MMT, stored in Visakhapatnam, Mangaluru and Padur.

Now ONGC is expected to build a new 1.75 MMT underground oil storage facility in Mangaluru. If completed, India’s emergency crude storage capacity can increase from 5.33 MMT to around 7.08 MMT.

Out of the estimated ₹15,000 crore project cost, around ₹5,000 crore may go into building the storage facility, while around ₹10,000 crore may be needed to fill it with crude oil.

Underground storage is considered safer than normal surface storage because it offers better protection from natural disasters, temperature changes and evaporation losses.

The Iran war and West Asia tensions have shown India why depending only on crude oil imports can be risky.

In this video, we explain:

What is a Strategic Petroleum Reserve?
Why India needs emergency oil storage
Why ONGC is building a new reserve in Mangaluru
How much oil India can store right now
How India’s SPR capacity can increase to 7.08 MMT
Why underground oil storage is important
And why energy security has become a major priority for India

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