Key facts
- India's HPCL has purchased 2 million barrels of Nigerian crude to diversify supply sources.
- The Nigerian crude will be used to supply HPCL's refinery in Rajasthan.
- India is also planning a new 13 million barrel oil storage site in Mangaluru.
- Refiners are seeking alternative supplies from regions like Africa and South America due to Middle East supply disruptions.
- Indian crude oil imports from Russia reached a record high in July.
India is actively seeking to secure its crude oil supply by diversifying sources and expanding storage capacity amid fears of disruption in the Middle East. State-owned refiner Hindustan Petroleum Corporation Limited (HPCL) has acquired 2 million barrels of Nigerian crude from commodity trader Glencore. This move aims to compensate for lost supplies from the Middle East, which have become increasingly unreliable due to regional conflicts and chokepoint risks like the Strait of Hormuz. The Nigerian crude is destined for HPCL's refinery in Rajasthan. Indian refiners are also increasing their intake of Russian crude, which reached a record high in July, and exploring supplies from as far as Angola and Venezuela. Concurrently, India plans to construct a new 13 million barrel oil storage facility in Mangaluru to bolster its strategic reserves and commercial operations, enhancing resilience against future supply shocks. HPCL's managing director noted that term supplies from the Middle East were significantly impacted in the first quarter due to these geopolitical tensions.