Strategic Petroleum Reserves

India is significantly bolstering its energy security by expanding its Strategic Petroleum Reserves (SPR) network, a crucial buffer against global oil price volatility and supply disruptions. The existing underground caverns in Visakhapatnam, Mangalore, and Padoor, with a combined capacity of 5.33 Million Metric Tonnes (MMT), are being augmented with new facilities and a second phase of development, underscoring the nation’s proactive approach to managing its energy needs.

The Indian Strategic Petroleum Reserves Limited (ISPRL), a special purpose vehicle under the Ministry of Petroleum & Natural Gas, oversees this critical infrastructure. The current reserves provide approximately 9.5 days of the nation’s crude oil requirement, supplementing the storage facilities of oil marketing companies.

Existing Strategic Petroleum Reserves: An Updated Overview

The foundational phase of India’s SPR program consists of three key sites:

1. Visakhapatnam, Andhra Pradesh

• Storage Type: Underground rock caverns
• Capacity: 1.33 MMT
• Commissioned: June 2015
• Details: This facility was the first to be commissioned under the SPR program, marking a significant step in India’s journey towards energy self-sufficiency. It is strategically located on the east coast, close to major refineries.

2. Mangalore, Karnataka

• Storage Type: Underground rock caverns
• Capacity: 1.5 MMT
• Commissioned: October 2016
• Details: Situated on the west coast, the Mangalore facility enhances the distribution and accessibility of reserves. Portions of this facility have been leased to international partners like the Abu Dhabi National Oil Company (ADNOC), reflecting a strategic move towards a commercial-cum-strategic model.

3. Padoor, Karnataka

• Storage Type: Underground rock caverns
• Capacity: 2.5 MMT
• Details: Padoor currently holds the largest volume of strategic reserves in the country. Its significant capacity plays a pivotal role in the overall SPR framework.

Ambitious Expansion on the Horizon: Phase II and Beyond

The Government of India has approved a significant expansion of the SPR program under Phase II, which will add a further 6.5 MMT of storage capacity. This phase is being developed under a Public-Private Partnership (PPP) model to invite investment and operational expertise from the private sector. The new projects include:

• Chandikhol, Odisha: A new facility with a planned capacity of 4 MMT. Its location on the east coast will further diversify the strategic storage landscape.
• Padoor (Phase II), Karnataka: An additional 2.5 MMT of storage is being added to the existing facility in Padoor, further cementing its importance in the national energy grid.

Furthermore, looking ahead, the government is exploring the establishment of six additional SPR sites to achieve its long-term goal of having reserves equivalent to 90 days of net imports, in line with the standards of the International Energy Agency (IEA). Feasibility studies are underway for potential locations, including a facility in the Mangalore Special Economic Zone and an innovative salt cavern-based storage in Bikaner, Rajasthan. This forward-looking strategy aims to create a robust and resilient energy infrastructure for India’s future.