Government is actively planning the development of three new strategic petroleum reserves (SPRs) as part of its broader push to enhance energy security and better prepare for potential supply disruptions, according to L.R. Jain, CEO of Indian Strategic Petroleum Reserve Ltd (ISPRL). These upcoming facilities aim to significantly boost the country’s emergency stockpile and reduce its vulnerability to global geopolitical shocks.
Feasibility Studies Underway
Engineers India Ltd is currently conducting feasibility studies for the proposed sites. The new reserves are planned at:
*Bikaner, Rajasthan: A 5.2–5.3 million tonne facility located in salt caverns
*Mangalore, Karnataka: An additional 1.75 million tonne reserve to complement the existing facility
*Bina, Madhya Pradesh: A new reserve with capacity yet to be finalized
The projects will require final approval from the Union Cabinet following the completion of feasibility assessments.
Current Storage Capacity and Future Additions
India already operates three SPRs located in Mangalore, Padur, and Visakhapatnam, with a combined storage capacity of 5.33 million tons. These reserves act as a critical buffer during supply disruptions or price shocks.
In addition to the newly proposed reserves, India has already approved:
*A 2.5 million tonne expansion at Padur
*A 4 million tonne facility at Chandikhol, Odisha
Targeting 90 Days of Strategic Reserves
India is aiming to hold reserves equivalent to 90 days of oil consumption, in line with the standards set by the International Energy Agency (IEA)—a precondition for membership. Presently, India can meet 75 days of demand through a combination of strategic reserves, inventories held by companies, and oil in transit. “We are looking for 90 days of reserves,” Jain said. “And Indian fuel demand is also rising, so we need additional storage.”
Private Participation and Commercialisation Model
India has revised its SPR policy in recent years to encourage private participation and commercial use of storage, taking cues from Japan and South Korea, which allow private oil majors to lease space and trade crude stored in strategic reserves. This approach increases flexibility, optimizes asset utilization, and enhances overall energy resilience.
Securing India’s Energy Future
As the world’s third-largest oil importer and consumer, India relies on imports for over 80% of its crude oil needs. Expanding SPRs not only ensures preparedness in times of global uncertainty but also strengthens India’s negotiating power in the international oil market. As reported by msn.com, with rising domestic demand and heightened geopolitical risks, these new oil reserve are a timely and strategic investment in safeguarding the nation’s energy future.
