ONGC to Build 1.75 Million Tonne Strategic Oil Reserve at Mangalore, Strengthening India’s Energy Security – Indian PSU
Oil and Natural Gas Corporation (ONGC) is set to significantly strengthen India’s energy security by developing an additional 1.75 million tonnes (12.83 million barrels) of Strategic Petroleum Reserve (SPR) capacity at Mangalore, taking the region’s total storage capacity to 3.25 million tonnes (23.8 million barrels).
The announcement was made through a regulatory filing by ONGC on July 9, highlighting the project’s strategic importance for the nation.
The new reserve will be built in addition to the existing 1.5 million tonne underground cavern operated by Indian Strategic Petroleum Reserves Limited (ISPRL) at Mangalore.
According to ONGC, the project is being undertaken in line with directives issued by the Ministry of Petroleum and Natural Gas and has been classified as a project of “national importance.”
Unlike earlier strategic storage projects, where public sector oil marketing companies primarily developed commercial storage infrastructure, ONGC will finance the new strategic reserve through its own capital investment.
Strengthening India’s Energy Security
The expansion comes at a time when India is reassessing its energy security strategy amid rising geopolitical tensions and concerns over global crude oil supply disruptions.
Recent uncertainties surrounding the Strait of Hormuz, a critical global oil transit route, have reinforced the need for larger strategic petroleum reserves to safeguard the country’s energy needs during emergencies.
The Government of India has been considering expanding both crude oil and LPG strategic reserves to ensure supplies sufficient for at least one month of domestic consumption during major supply disruptions.
While ONGC has confirmed the development of the project, details regarding the implementation timeline and procurement strategy for filling the reserve have not yet been disclosed.
