India is strengthening its energy security as Oil and Natural Gas Corporation (ONGC) plans to reserve half of its upcoming 1.75 million metric tonne oil storage facility for the country’s Strategic Petroleum Reserve (SPR). 

The new underground storage site will be developed at Mangaluru, Karnataka, helping India improve its preparedness against global supply disruptions.

The remaining half of the facility is expected to be used for commercial purposes. The project is part of the government’s broader plan to expand strategic crude storage while allowing companies to generate revenue by leasing or using part of the capacity commercially.

India currently has 5.33 million metric tonnes of strategic petroleum storage across Mangaluru, Padur and Visakhapatnam, managed by Indian Strategic Petroleum Reserves Ltd (ISPRL). With the addition of the new ONGC facility, the country’s emergency crude storage capacity will increase by nearly one-third.

The expansion follows recent geopolitical tensions in West Asia, which highlighted the importance of maintaining adequate emergency oil reserves. 

According to the government, India currently has enough crude oil and petroleum product storage to meet 74 days of net crude import requirements, including inventories held at refineries, offshore facilities and pipelines.

The government is also moving ahead with the next phase of its strategic storage programme. New facilities are planned at Chandikhol in Odisha and Padur in Karnataka through a public-private partnership model, further boosting India’s long-term energy resilience.

The latest initiative reflects India’s continued focus on reducing vulnerability to global oil market disruptions. As the world’s third-largest oil importer, expanding strategic reserves is expected to improve supply security, strengthen energy planning and provide greater flexibility during periods of geopolitical uncertainty.

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