India Expands Oil Storage Amid Supply Disruption Fears
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IN SHORT
India is expanding its oil storage and refining capacity to enhance energy security amid fears of supply disruptions. The Oil and Natural Gas Corporation (ONGC) will construct a new 13 million barrel oil storage facility in Mangaluru. Meanwhile, Indian Oil Corporation subsidiary CPCL plans to boost its Manali refinery's crude oil refining capacity by one-third to 280,000 barrels per day. CPCL also intends to shift its Cauvery Basin Refinery project's focus towards petrochemicals.
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Key Numbers
13 million barrelsnew oil storage capacity in Mangaluru
280,000 bpdplanned crude oil refining capacity at Manali refinery
one-thirdincrease in Manali refinery's crude oil refining capacity
Who's Involved
Oil and Natural Gas Corporation
building new 13 million barrel oil storage site in Mangaluru
Chennai Petroleum Corporation Limited
planning 280,000 bpd Manali refinery expansion
Indian Oil Corporation
parent company of CPCL
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Key facts
India's Oil and Natural Gas Corporation will build a new oil storage site.
The new storage site will have a capacity of 13 million barrels.
The storage site will be located in Mangaluru.
The expansion aims to bolster resilience against supply shocks.
Disruptions from the Middle East are a concern.
Increased reliance on Russian crude is a factor.
Chennai Petroleum Corporation Limited (CPCL) plans a refinery expansion.
CPCL is a subsidiary of Indian Oil Corporation.
The Manali refinery's capacity will increase by one-third.
The Manali refinery's capacity will reach 280,000 barrels per day.
CPCL intends to reconfigure its Cauvery Basin Refinery project.
The Cauvery Basin Refinery project will focus on petrochemicals.
India is taking steps to bolster its energy security by expanding oil storage and refining capabilities. The Oil and Natural Gas Corporation (ONGC) is set to build a new 13 million barrel oil storage site in Mangaluru. This expansion aims to increase resilience against potential supply shocks, particularly those stemming from disruptions in the Middle East and the nation's growing reliance on Russian crude oil.
In parallel, Chennai Petroleum Corporation Limited (CPCL), a subsidiary of Indian Oil Corporation, is planning a significant expansion of its Manali refinery. CPCL intends to increase the crude oil refining capacity at this facility by one-third, bringing it to 280,000 barrels per day. Furthermore, CPCL is considering reconfiguring its Cauvery Basin Refinery project to concentrate on petrochemical production rather than traditional refining.
These initiatives reflect India's strategic efforts to manage its energy needs amidst a volatile global supply landscape. The increased storage capacity will provide a buffer against unforeseen disruptions, while the refinery expansion and shift towards petrochemicals aim to meet growing domestic demand and diversify the energy sector's output.
↳ Why This Matters
India is taking steps to bolster its energy security by expanding oil storage and refining capabilities. The Oil and Natural Gas Corporation (ONGC) is set to build a new 13 million barrel oil storage site in Mangaluru. This expansion aims to increase resilience against potential supply shocks, particularly those stemming from disruptions in the Middle East and the nation's growing reliance on Russian crude oil.
Frequently asked questions
India is increasing its oil storage capacity to improve resilience against supply shocks, particularly following disruptions in the Middle East and increased reliance on Russian crude imports.
The new storage site will be built in Mangaluru, in the southwestern state of Karnataka.
The facility is planned to hold approximately 13 million barrels of crude oil, equivalent to 1.75 million metric tons.
India's current strategic petroleum reserve storage has a total capacity of 5.33 million metric tons, which is equivalent to about eight days of national oil consumption.
What Happens Next
01ONGC will fund the construction of the new storage site.
02The new storage site will hold 1.75 million metric tons of oil.
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