ONGC Board approves 1.75 MMT strategic petroleum reserve project at Mangalore

The Oil and Natural Gas Corporation (ONGC) board has given its approval for a significant expansion of India's energy security infrastructure. The company will develop a 1.75 million metric tonne (MMT) Strategic Petroleum Reserve (SPR) at Mangalore, a move deemed a project of national importance.

This decision by ONGC's Board of Directors aligns with directives from the Ministry of Petroleum and Natural Gas. The board also urged the company to explore broader commercial utilization opportunities with government support. India, heavily reliant on imports for over 85% of its crude oil needs, views strategic reserves as crucial for cushioning its economy against global supply disruptions.

The new Mangalore facility will add to India's existing SPR capacity of 5.33 MMT across Visakhapatnam, Mangalore, and Padur. Furthermore, the government has approved an additional 6.5 MMT of commercial-cum-strategic storage in Odisha and Padur. The proposed ONGC project specifically targets expanding storage at one of India's key western coast petroleum hubs.

Concerns over global oil supply disruptions have accelerated India's efforts to expand its emergency crude storage. The country has also strengthened international energy partnerships, including agreements with the Abu Dhabi National Oil Company (ADNOC) for storage at the Mangalore facility. This collaboration allows for commercial use of crude while ensuring India retains strategic access during emergencies.