Key facts
- India plans to construct a new 1.75 million metric ton Strategic Petroleum Reserve in Mangalore.
- India's government is advancing Phase II of its SPR program, adding 6.5 million metric tons of storage.
- South Africa's draft policy aims for state reserves to cover 60-90 days of national demand.
- South Africa's plan requires private fuel distributors to maintain additional commercial inventories.
- India currently imports over 80% of its oil, highlighting energy security concerns.
India and South Africa are moving to significantly bolster their strategic petroleum reserves (SPRs) in response to increasing global energy crises and supply chain vulnerabilities. India's state-owned Oil and Natural Gas Corp (ONGC) announced plans to construct a new 1.75 million metric ton SPR in Mangalore, adding to its existing national stockpile which currently covers only 8 to 9 days of net oil demand. The Indian government is also advancing Phase II of its SPR program, which will add another 6.5 million metric tons of storage, more than doubling its emergency crude capacity. This expansion aims to enhance energy security for a nation that imports over 80% of its oil. Similarly, South Africa's Department of Mineral Resources and Energy has released a draft policy to increase its strategic oil reserves. The proposal outlines that the state-owned South African National Petroleum Company (SANPC) would build and maintain reserves equivalent to 90 days of national demand, comprising about 70% crude oil and 30% refined fuels, totaling approximately 36 million barrels. Additionally, private fuel distributors, manufacturers, and importers will be required to hold 14 to 21 days of commercial fuel inventories at their own expense to buffer against short-term disruptions. These moves come as global energy flows remain precarious, highlighted by the IEA's coordinated release of 400 million barrels earlier in the year.