ONGC To Build ₹15,000 Crore Oil Reserve
The government has asked ONGC to develop India’s next strategic petroleum reserve at Mangaluru, a project estimated at around ₹15,000 crore, as New Delhi looks to strengthen energy security amid global oil supply risks.
ONGC Strategic Petroleum Reserve In Mangaluru
The proposed facility will be an underground crude oil storage cavern with a capacity of around 1.75 million metric tonnes. It is expected to come up at Mangaluru in Karnataka, where ONGC already owns land identified for the project.
The investment is likely to include about ₹5,000 crore for construction and nearly ₹10,000 crore to fill the cavern with crude oil at current prices. The project marks a shift in the way India is expanding its emergency crude storage network, with ONGC expected to take responsibility for both building and filling the reserve.
India Energy Security Push Amid Oil Risks
The move comes at a time when geopolitical tensions in West Asia and concerns over oil supply disruptions have renewed focus on India’s dependence on imported crude. India imports more than 80% of its crude oil requirement, making emergency reserves critical during global supply shocks.
A larger strategic reserve would help cushion the country against sudden disruptions, price spikes or shipping challenges in key energy routes.
India Strategic Petroleum Reserve Capacity
India currently has operational strategic crude storage of 5.33 million metric tonnes across Visakhapatnam, Mangaluru and Padur. The proposed Mangaluru facility would expand this capacity by nearly one-third.
The government has also been exploring additional reserves at other locations as part of a broader plan to improve national oil security and move closer to international energy security benchmarks.
