State-owned Oil and Natural Gas Corporation (ONGC) has announced plans to build a 1.75 million metric tonne (around 13 million barrels) strategic petroleum reserve (SPR) in Mangaluru, Karnataka, as India moves to strengthen its energy security and emergency crude oil reserves.

The announcement was made through a stock exchange filing, with ONGC stating that the new facility will be developed in the national interest. The company also plans to seek government approval for the commercial use of the storage facility once it is completed.

Move Follows Global Energy Supply Disruptions

India's decision comes after recent disruptions in global oil supplies during the conflict involving Iran, when shipping through the Strait of Hormuz was affected.

As the world's third-largest importer and consumer of crude oil, India remains heavily dependent on overseas energy supplies, making strategic reserves essential during geopolitical crises or supply disruptions.

Current Oil Storage Capacity to Increase

India currently has strategic petroleum reserves with a total storage capacity of 5.33 million metric tonnes, located at Mangaluru, Padur and Visakhapatnam (Vizag).

These facilities are operated by Indian Strategic Petroleum Reserves Limited (ISPRL), a government-owned company responsible for maintaining emergency crude oil stocks.

The proposed ONGC project will significantly expand the country's reserve capacity, while the government is also planning additional storage facilities in Chandikhol, Odisha, and a second reserve at Padur in Karnataka.

India Strengthens Energy Partnerships

India is working with international partners, including the United Arab Emirates (UAE) and Japan, to enhance its strategic oil reserves.

Earlier this year, during Prime Minister Narendra Modi's visit to the UAE, Abu Dhabi National Oil Company (ADNOC) announced plans to increase its crude oil storage in India to 30 million barrels. The two countries are also exploring additional storage options in Fujairah as part of India's long-term energy security strategy.

Currently, Mangalore Refinery and Petrochemicals Limited (MRPL), an ONGC subsidiary, operates a 300,000 barrels-per-day refinery in Mangaluru. Part of the existing strategic storage at the location is leased to MRPL, while the remaining capacity is used by ADNOC.

Project Timeline Yet to Be Announced

ONGC has not disclosed the estimated investment or the expected completion date for the new storage facility.

The project forms part of India's broader strategy to improve energy resilience, reduce supply risks and maintain adequate emergency crude oil stocks to support the country's growing energy demand.