India’s energy security plan has been greatly strengthened after the state-owned Oil and Natural Gas Corporation (ONGC) authorised the construction of a 1.75 million metric tonne (MMT) Strategic Petroleum Reserve (SPR) facility in Mangalore, Karnataka.

The project, which was authorised as a national importance programme, is to reduce India’s susceptibility to fluctuations in international markets and increase the country’s capacity to tolerate disruptions in the world’s crude oil supply.

India’s long-term objective of creating a strong foundation for energy security will be supported by the proposed SPR expansion, which will greatly increase the country’s emergency crude storage capacity on the western coast.

The construction of the new strategic petroleum storage facility and related infrastructure has received in-principle permission from the ONGC Board of Directors. In times of geopolitical unpredictability, conflict, or unforeseen interruptions in the world’s energy markets, the project is expected to be important in protecting India’s supply of crude oil.

ONGC intends to approach the government for the required approvals and regulatory backing to order to explore more extensive commercial utilisation options for the proposed storage facility.

Mangalore in Karnataka, a strategically significant region on India’s western shore, will be the site of the new SPR plant. Major petroleum infrastructure already exists in the area, including refining plants run by ONGC’s subsidiary Mangalore Refinery and Petrochemicals Ltd. (MRPL).

One of India’s major refining centres could benefit from increased crude availability and improved supply chain efficiency if the extra storage capacity is connected with MRPL’s operations.

The Mangalore region is a vital hub for India’s petroleum industry, since MRPL runs a sizable refinery in Karnataka with a daily capacity of over 3,00,000 barrels.

India’s emergency reserves will have an additional 12.8 million barrels of crude oil storage capacity, thanks to the proposed 1.75 MMT Strategic Petroleum Reserve.

With three locations—Visakhapatnam, Andhra Pradesh: 1.33 MMT; Mangalore, Karnataka: 1.5 MMT; and Padur, Karnataka: 2.5 MMT—India’s strategic petroleum reserves currently have a total capacity of 5.33 MMT.

India’s capacity to sustain crude availability during supply shocks will be greatly enhanced by the expansion.