How much oil does India have in strategic reserves?
What's the story
India imports over 85% of its crude requirements, making it vulnerable to disruptions in global supply chains. To mitigate this risk, India has created strategic petroleum reserves (SPR) at three locations: Visakhapatnam in Andhra Pradesh and Mangaluru and Padur in Karnataka. These underground caverns have a total capacity of 5.33 million metric tons (MT), enough to meet India's crude oil needs for about nine-and-a-half days.
Energy buffer
Role of strategic reserves in energy security
The strategic reserves are a key part of India's energy security strategy. They act as a buffer against short-term supply shocks, ensuring uninterrupted fuel availability.
The facilities are managed by Indian Strategic Petroleum Reserves Ltd (ISPRL), a government-owned company.
However, it's important to note that these strategic reserves only represent one part of India's overall oil stockpile, which also includes commercial stocks held by state-run oil companies and crude stored in refinery tanks along the supply chain.
Capacity growth
Current storage capacity and future expansion plans
India's total storage capacity, including strategic and commercial stocks, is around 74 days of net crude import requirements. This is still below the International Energy Agency benchmark of at least 90 days.
To address this gap, India has approved Phase-II of the SPR program, which will add another 6.5 MT of storage capacity.
The expansion includes a 4 MT facility at Chandikhol in Odisha and a 2.5 MT facility at Padur in Karnataka.
Global collaborations
International partnerships and future developments
India's energy security strategy is also bolstered by international partnerships, especially with the UAE.
Abu Dhabi National Oil Company (ADNOC) plans to store up to 30 million barrels of crude in India's SPRs.
The proposed expansion will utilize existing infrastructure at Mangaluru and explore new opportunities at Visakhapatnam and Chandikhol in Odisha.
India is also planning a 1.75 MT facility at Mangaluru, adjacent to the existing reserve, and exploring sites in Rajasthan and Madhya Pradesh for future strategic storage expansion.