Indian Strategic Petroleum Reserves (ISPRL) is setting up 12.5 million tonne strategic crude oil storage capacity in Bikaner, Rajkot, Chandikhol and Padur.
This is part of the phase-II project, Minister of State for Petroleum & Natural Gas Panabaaka Lakshmi informed the Parliament.
In the first phase, ISPRL is setting up storage facilities of 5.33 million tonne of crude oil at Visakhapatnam (1.33 mn t), Mangalore (1.5 mn t) and Padur (storage capacity: 2.5 mn t) to enhance India’s energy security.
India imports more than 80 percent crude oil it processes and any disruption in imports would have adverse impact on its economy.
The project is intended to create buffer stocks for crude oil as it would be used to address short-term price volatility. India currently stores oil for 72 days, as against the 90 days of buffer stock recommended by the Integrated Energy Policy (IEP-2008).
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