Key facts
- ONGC will add 1.75 million tons of strategic petroleum reserve capacity in Mangalore.
- This expansion will increase the total regional storage capacity to 3.25 million tons.
- The project is being developed with ONGC's own capital investment.
- India is considering increasing its crude and LPG reserves to cover a month's demand.
- Adnoc plans to double its crude storage in India to 4 million tons.
India's state-owned Oil and Natural Gas (ONGC) is set to add 1.75 million tons (12.83 million barrels) of strategic petroleum reserve capacity to the country's existing reserves in Mangalore. This expansion, managed by Indian Strategic Petroleum Reserves (ISPRL), will increase the total capacity in the region to 3.25 million tons (23.8 million barrels) and is considered a project of "national importance" developed under directives from the oil ministry.
ONGC will invest its own capital for this project, a shift from previous commercial storage builds by state-owned refiners. The timeline for filling the reserve remains uncertain. New Delhi has been considering increasing its crude and LPG reserves to cover at least a month's domestic demand, prompted by supply shocks linked to potential closures of the Strait of Hormuz.
In parallel, Abu Dhabi's state-owned Adnoc is looking to double its crude storage in India to up to 4 million tons (30 million barrels) through a collaboration with ISPRL. Adnoc currently holds nearly 2.05 million tons of crude storage in India, including 800,000 tons in Mangalore and 1.25 million tons in Padur.