The Minister of State for Petroleum & Natural Gas Panabaaka Lakshmi informed the Rajya Sabha in a written reply that in order to further increase the Strategic crude oil storage capacity, the government, through Indian Strategic Petroleum reserves (ISPRL), has undertaken a detailed feasibility study for construction of additional 12.5 Million Metric Tonne (mn mt) of crude oil storages in Phase-II at four locations.
These locations are Bikaner, Rajkot, Chandikhol and Padur. ISPRL is setting up Strategic Crude Oil Reserves with storage capacity of 5.33 MMT at three locations. Visakhapatnam (storage capacity: 1.33 mn mt), Mangalore (storage capacity: 1.5 mn mt) and Padur (storage capacity: 2.5 mn mt) to enhance the energy security of the country.
Laksmhi added that the Integrated Energy Policy (2008) approved by the government has, inter alia, recommended that “a reserve, equivalent to 90 days of oil imports should be maintained for strategic-cum-buffer stock purposes and or buy options for emergency supplies from neighbouring large storages such as those available in Singapore.
The buffer stocks should be used to address short-term price volatility. The country currently has approximately 72 days of crude oil and petroleum products cover on import basis, she added.
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