Key facts
- India is planning to add two new strategic petroleum reserves facilities.
- The proposed sites are in Bikaner, Rajasthan, and Bina, Madhya Pradesh.
- These additions aim to increase India's energy security and cover its oil demand.
- Current strategic reserves in India can only cover eight days of national oil demand.
- ONGC is also developing a storage site in Mangaluru, Karnataka.
India is moving to expand its strategic petroleum reserves by planning two new facilities, aiming to enhance its energy security. State-controlled Indian Strategic Petroleum Reserves Ltd (ISPRL) is finalizing feasibility studies for a site in Bikaner, Rajasthan, and has completed a pre-feasibility study for a cavern in Bina, Madhya Pradesh. These additions are intended to bolster India's capacity, which currently covers only about eight days of national oil demand. The country, the world's third-largest crude oil importer, has been seeking to diversify its energy sources and secure supplies, particularly following disruptions in crude flows from the Middle East. The new facilities will complement ongoing projects, such as the one led by Oil and Natural Gas Corporation (ONGC) to build a storage site in Mangaluru, Karnataka, capable of holding approximately 13 million barrels of oil. Half of the Mangaluru capacity is designated for strategic storage, with the other half supporting ONGC's commercial operations. The government has reportedly allocated an estimated $1.6 billion for building and filling a new strategic petroleum reserve site.