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India's ONGC plans a 1.75 million tonne national strategic oil reserve

India's ONGC plans a 1.75 million tonne national strategic oil reserve
India's ONGC plans a 1.75 million tonne national strategic oil reserve

India's Oil and Natural Gas Corp, India's largest explorer, will build a 1,75 million metric ton national strategic petroleum reserve at Mangalore (in southern India), the company announced in a late-night stock exchange filing. India, which is the third largest oil consumer and importer in the world, has been severely affected by the blockade of Strait of Hormuz following the Israeli-U.S. attack on Iran. Around a fifth (25%) of world energy passes through the waterway. To strengthen its emergency supply, the 'South Asian nation' is increasing its energy cooperation with other countries, such as Japan and the United Arab Emirates.

In the?filing, ONGC said it would ask the federal government for permission to use the storage in "national interests" for commercial purposes.

New Delhi has already allowed commercial use of part of its strategic storage, built in three locations in southern India - Mangalore Padur and Vizag. This allows up to 5,33 MT crude to be stored. The Indian Strategic Petroleum Reserves Ltd. manages these storage facilities.

Mangalore Refinery and Petrochemicals Ltd is a subsidiary of ONGC that operates a refinery capable of processing 300,000 barrels per day in Mangalore. It has already leased the half of the 1.5MT Mangalore - SPR. The remaining capacity is leased by Abu Dhabi National Oil Co.

ADNOC, during the visit of Indian Prime Minister Narendra Modi to the UAE in early this year, announced plans to expand crude oil'storage' in India up to 30,000,000?barrels.

ADNOC announced that India would also explore the possibility of storing crude oil at Fujairah, as part of India's strategic reserves.

India is also planning to build a 4 MT strategic storage facility in Odisha, and a 2.5 MT facility in Padur in southern India. (Reporting and editing by Nidhi verma)

(source: Reuters)