Abu Dhabi National Oil Company (ADNOC) has shipped the first oil cargo for India’s strategic petroleum reserve at Mangalore.
- Indian Strategic Petroleum Reserve Ltd (ISPRL) had then signed an agreement with ADNOC which allows the firm to store 5.86 million barrels of crude in the strategic facility at Mangalore at its own cost.
- India can use the entire available crude oil stored by ADNOC in the Mangalore facility during an emergency situation. The Agreement with ISPRL also allows ADNOC to sell part of the crude oil to Indian refineries on a commercial basis while adhering to mutually agreed minimum crude storage which is for the exclusive use of the Indian government.
About SPR programme:
- The construction and maintenance of the strategic petroleum reserves (SPR) are given to the Indian Strategic Petroleum Reserves Ltd (ISPRL).
- ISRPL is building the underground rock caverns at Visakhapatnam, Mangaluru and at Padur. While Visakhapatnam is located on the eastern coast, the other two locations Mangalore and Padur (near Mangalore) are located on the western coast of Karnataka state.
- These three strategic reserves would have a capacity of 5.33 MT. The three projects will store crude oil for 13 days. To ensure energy security for 90 days, additional 13.32 MT capacity storages have to be created. That will be achieved in the second phase. The second phase, which is under planning seeks to create 12.5 MT storage capacity at Padur, Chandikhol (Odisha), Bikaner (Rajasthan) and Rajkot (Gujarat).
- With India building around 39 million barrels of the strategic crude oil storage facility, the 5.86 million barrels supplied by state-run Abu Dhabi National Oil Company (ADNOC)—the only one to partner with India on its crude oil reserve programme till date, can be used during an emergency.
- With India’s energy demand expected to grow at 4.2% over the next 25 years, energy majors are scouting for opportunities here.
- The agreement with ISPRL also allows ADNOC to sell part of the crude oil to Indian refineries on a commercial basis while adhering to mutually agreed minimum crude storage which is for the exclusive use of the Indian government
- Also Read: Strategic Petroleum Reserves in India