India To Build Three New Oil Reserves To Boost Emergency Fuel Stockpile

2025-07-03 02:07:55

(MENAFN- KNN India) New Delhi, Jul 3 (KNN) To meet the rising domestic fuel demand and strengthen its energy security, India is planning to build three new strategic petroleum reserves (SPRs).

These underground storage facilities will be developed in Rajasthan, Odisha, and Karnataka, aiming to increase the country's emergency crude oil stockpile.

According to government sources, the new reserves will collectively add 12 million metric tonnes (MMT) to India's existing strategic storage capacity, reported mint.

The move comes at a time when global oil prices remain volatile and India's energy needs are growing steadily.

Currently, India has three SPRs located in Mangaluru (Karnataka), Visakhapatnam (Andhra Pradesh), and Padur (also in Karnataka), with a combined capacity of 5.33 MMT.

These are managed by the Indian Strategic Petroleum Reserves Ltd (ISPRL), a special-purpose vehicle under the Ministry of Petroleum and Natural Gas.

The new storage sites are expected to be built through a public-private partnership (PPP) model, helping attract private investment while reducing the financial burden on the government.

The project is still in the planning phase and will require Cabinet approval before moving ahead.

Strategic petroleum reserves act as emergency buffers, allowing countries to cope with supply disruptions due to geopolitical tensions, natural disasters, or other unforeseen events. India had previously tapped into its SPRs in 2021 to stabilise domestic fuel prices.

With increasing demand for petroleum products and heightened global uncertainties, the decision to expand the SPR network is seen as a proactive step toward ensuring long-term energy resilience.

Once completed, the new reserves will enhance India's ability to store enough oil to meet around 22 days of fuel demand, up from the current 9.5 days, thereby strengthening the country's readiness for any energy-related crisis.

(KNN Bureau)

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