The Oil and Natural Gas Corporation (ONGC) plans to build a 1.75 million metric tonne national strategic petroleum reserve [1].
This initiative aims to strengthen India's energy security by creating a critical buffer of crude oil. By establishing a strategic reserve, the country can better insulate its economy from sudden global supply disruptions or volatile price swings in the international energy market.
The project will be located in Mangalore, situated in Southern India [1]. Reuters said the company intends to develop the facility as a national strategic petroleum reserve [2].
ONGC is currently seeking permission from the government to allow for commercial use of the reserve in the national interest [3]. This request suggests a hybrid model where the facility serves both as a security safeguard and a functional asset for the state's energy operations.
Strategic reserves are typically used by nations to maintain a minimum level of oil stocks to ensure the continuity of essential services during crises. The scale of the proposed facility—1.75 million metric tonnes [1]—reflects the growing demand for fuel within the Indian economy and the need for a more robust infrastructure to manage those resources.
Officials have not yet detailed the specific timeline for completion or the total estimated cost of the Mangalore site. However, the move aligns with broader national goals to reduce dependency on immediate imports during geopolitical instability.
“ONGC plans to build a 1.75 million metric tonne national strategic petroleum reserve”
The proposal to allow commercial use of a strategic reserve indicates that India is looking for a way to balance the high cost of infrastructure with operational utility. By blending strategic stockpiling with commercial viability, ONGC can justify the massive investment required for the Mangalore site while still providing a safety net for the national economy during global energy shocks.
