Key facts
- ONGC plans to build a new strategic crude oil reserve totaling 1.75 million tons (12.8 million barrels).
- India's current strategic oil reserve capacity is 5.33 million tons (39 million barrels).
- The government has requested ONGC to develop the new reserve site with an estimated $1.6 billion investment.
- Additional plans include two more storage facilities with capacities of 4 million tons and 2.5 million tons.
- The UAE's ADNOC plans to increase its crude storage in India to 30 million barrels.
India's Oil and Natural Gas Corp (ONGC) is planning to construct a new strategic crude oil reserve with a capacity of 1.75 million tons, equivalent to 12.8 million barrels. This initiative aims to enhance the nation's energy security, particularly following recent supply disruptions and price hikes attributed to Middle East conflicts. The government has requested ONGC to develop this new site, with an estimated investment of $1.6 billion.
Currently, India possesses 5.33 million tons (39 million barrels) of strategic petroleum reserves spread across three southern locations, managed by Indian Strategic Petroleum Reserves Ltd. This existing capacity covers only about eight days of national oil demand. The decision to expand storage follows years of India seeking to boost its capacity amid rising energy consumption, which has recently outpaced China's growth rates.
Beyond the ONGC project, New Delhi has further plans for two more storage facilities, one with a capacity of 4 million tons (29 million barrels) and another with 2.5 million tons (18.3 million barrels). India is also exploring the possibility of hosting foreign oil inventories. As part of this strategy, the UAE's national oil company, ADNOC, has indicated plans to increase its crude storage in India to 30 million barrels.