India Eyes Two New Sites to Expand Strategic Oil Reserves
State-controlled Indian Strategic Petroleum Reserves Ltd (ISPRL) is finalizing feasibility studies for two new strategic petroleum reserves facilities as the world’s third-largest crude oil importer looks to boost its energy security. ISPRL, a government-owned special purpose vehicle, is finalizing a feasibility study for a facility at Bikaner in the state of Rajasthan in northwestern India and…
India is considering the construction of two new strategic petroleum reserve facilities in an effort to enhance its energy security, according to Indian media reports. The Indian government-owned special purpose vehicle, State-controlled Indian Strategic Petroleum Reserves Ltd (ISPRL), is currently finalizing feasibility studies for these projects.
One facility is planned in Bikaner, Rajasthan, while a second site is being assessed at Bina in Madhya Pradesh. These additions to the existing strategic petroleum reserves initiative led by India's state-owned Oil and Natural Gas Corporation (ONGC) would expand the capacity to store crude oil in response to the Iran war and the subsequent disruption of crude oil flows at the Strait of Hormuz.
The new storage sites aim to mitigate potential supply shocks and bolster India's energy security, given its position as one of the world's largest crude oil importers and its current reserves capacity, which can only cover eight days of national oil demand. In 2022, India's government allocated $1.6 billion for the construction and filling of a new strategic petroleum reserves site, with plans to hold 13 million barrels of oil.
Half of this capacity will be reserved for strategic reserves, while the other half will support ONGC's commercial operations.
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