{
  "id": 4655644,
  "title": "ONGC to enter crude trading, build 1.75 million tonne strategic oil reserve",
  "url": "https://urgent.news/2026/08/31/ongc-to-enter-crude-trading-build-1-75-million-tonne-strategic-oil",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-31T14:08:15.000Z",
  "source": {
    "name": "Hindu BusinessLine",
    "slug": "hindu-businessline",
    "url": "https://www.thehindubusinessline.com/markets/commodities/ongc-to-enter-crude-trading-build-175-million-tonne-strategic-oil-reserve/article71411444.ece"
  },
  "original_language": "en",
  "account": "State-owned Oil and Natural Gas Corporation (ONGC) plans to enter crude and petroleum-product trading, as well as build a new strategic petroleum reserve, as it aims to enhance supply security and increase value across its energy portfolio, while maintaining upstream exploration as its central focus. ONGC's new trading unit is set to commence operations by the end of this year, according to Chairman and CEO Arun Kumar Singh. The unit will initially manage the group's own crude and product needs, while also pursuing third-party business. The company is considering locating the trading desk in either Dubai or Singapore, with a partnership from Hindustan Petroleum Corp Ltd (HPCL), Mangalore Refinery and Petrochemicals Ltd (MRPL), and an international trading partner to be selected. ONGC, along with its overseas investment arm ONGC Videsh Ltd and ONGC Petro Additions Ltd, will coordinate with the trading venture. This move is expected to create annual opportunities worth around USD 1 billion through better sourcing, freight management, and risk management. A 1.75 million tonnes strategic petroleum reserve is also being developed in Mangalore, which will increase India's dedicated emergency crude storage capacity by approximately one-third, from the current level of 5.33 million tonnes. The project is already approved by ONGC's board, and half of the capacity will be reserved for strategic use under government plans, while the remaining portion will be used commercially. ONGC will commence the construction process shortly, utilizing land already identified in the Mangalore Special Economic Zone. While expansion into trading and infrastructure is underway, Singh emphasized that exploration and production will continue to be the foundation of ONGC's strategy. The company aims to spend Rs 1 lakh crore on drilling 87 wells in deep-sea locations by 2031, with the government's recent decision to provide Rs 84,000 crore over five years to support offshore exploration to alleviate the financial burden on ONGC.",
  "summary": "The state-run energy major is seeking greater commercial integration across its businesses while keeping exploration and production at the core.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}