Our Bureau
Mumbai
State-owned Oil and Natural Gas Corporation (ONGC) has approved the development of a 1.75 million metric tonne (MMT) strategic petroleum reserve (SPR) at Mangaluru, Karnataka, in a significant move to bolster India’s energy security amid growing geopolitical uncertainties and global supply disruptions. The project marks the first time ONGC will independently finance the construction of a strategic crude oil storage facility.
The proposed underground reserve is expected to expand India’s emergency crude storage capacity by nearly one-third. The decision follows heightened concerns over energy supply vulnerabilities exposed during recent disruptions in global shipping routes, particularly around the Strait of Hormuz, a key transit point for global oil trade.
The new facility will complement India’s existing strategic reserves at Mangaluru, Padur and Visakhapatnam, which together have a storage capacity of 5.33 MMT and are managed by Indian Strategic Petroleum Reserves Ltd (ISPRL). ONGC has indicated that it will seek the Centre’s approval to allow commercial utilisation of the facility while ensuring it serves national strategic interests.
Mangaluru was selected for the expansion due to its strategic location and existing energy infrastructure. ONGC subsidiary Mangalore Refinery and Petrochemicals Ltd (MRPL) already operates a major refinery in the region, while portions of the existing reserve are leased to the Abu Dhabi National Oil Company (ADNOC), reflecting India’s growing international energy partnerships.
The project forms part of the government’s broader strategy to enhance crude storage capacity, reduce exposure to external supply shocks and improve long-term energy resilience. Additional strategic storage facilities are also planned at Chandikhol in Odisha and Padur in Karnataka as India continues to strengthen its emergency petroleum reserves in line with rising energy demand and evolving global risks.
