Strategic crude stocks at 6 new locations on cards

• India plans to create six new SPRs to enhance energy security amid global uncertainties.

• Locations include Mangalore SEZ (Karnataka) and salt caverns in Bikaner (Rajasthan).

• Engineers India Ltd (EIL) has been assigned to prepare Detailed Feasibility Reports (DFRs) by year-end.

• Visakhapatnam – 1.33 MMT

• Mangaluru – 1.5 MMT

• Padur – 2.5 MMT

• Total – 5.33 million metric tonnes (MMT)

• Phase 2 (Planned, PPP Mode):

• Chandikhol (Odisha) – 4 MMT

• Padur (Karnataka) – 2.5 MMT

• Total – 6.5 MMT

• New Six Sites: In addition to Phase 2; locations chosen near coastlines and refineries for strategic viability.

• India imports 85% of its crude oil, consuming 5.5 million barrels per day (mbpd).

• Strait of Hormuz, a key oil route, is vulnerable to geopolitical tensions (e.g., Iran-Israel conflict).

• Current emergency reserves cover 77 days of net imports; the target is 90 days, in line with International Energy Agency (IEA) norms.

• Estimated ₹2,500 crore capex per 1 MMT of SPR.

• Government exploring global partnerships (e.g., with Adnoc, Saudi Aramco) to share costs and hedge risks.

• Bharat bought cheap oil in 2020 ($19/barrel) to fill reserves and saved $685 million.

• India has an alternate supply plan if the Strait of Hormuz is blocked:

• Habshan-Fujairah pipeline (Adnoc, UAE) – 1.5 mbpd capacity.

• East-West pipeline (Saudi Aramco) – 5 mbpd capacity to the Red Sea.

• The government periodically evaluates and expands storage capacity based on technical and commercial feasibility.

• Oil sourcing strategy now includes 39 countries and leverages existing global strategic reserves.