Strategic Crude Oil Reserves

Indian Strategic Petroleum Reserve Limited (ISPRL), a Government of India Special Purpose Vehicle, has established Strategic Petroleum Reserves (SPR) facilities with total capacity of 5.33 Million Metric Tonnes (MMT) at three locations.

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The three locations are:

  1. Vishakhapatnam in Andhra Pradesh (1.33 MMT)
  2. Mangaluru in Karnataka (1.5 MMT)
  3. Padur in Karnataka (2.5 MMT)

Taking advantage of low crude oil prices in April/May 2020, the Strategic Petroleum Reserves were filled to full capacity, leading to notional savings of approximately INR 5000 crore.

As per the consumption pattern of 2019-20, the total capacity is estimated to provide for about 9.5 days of crude oil requirement.

In addition, Oil Marketing Companies (OMCs) in the country have storage facilities for crude oil and petroleum products for 64.5 days, thus the current total national capacity for storage of crude oil and petroleum products currently is 74 days.

Phase II of SPR Programme

In July 2021, Government had approved the establishment of two additional commercial-cum-strategic facilities with total storage capacity of 6.5 MMT at Chandikhol (4 MMT) in Odisha and Padur (2.5 MMT) in Karnataka, on a Public Private Partnership (PPP) mode.

During the two Road shows conducted, global trading companies like M/s Trafigura, BP, SKE&C, Petrochina, GASP, Vopak, Geostock, Monnet, Hyundai, Gulf Energy, Natixis, Vitol, Glencore, DBS, KNOC, M/s Lloyd’s Register, IC-Group, ANU Resources, Shell, Parson Brinkerhoff, Sweco AB, SKANSKA etc., evinced interest in participating in Phase II SPR project.

The entire facility shall be owned by Government of India. The Concessionaire shall transfer the SPR along with Single Mooring Point (SPM), onshore and offshore pipeline to the Government of India, at the end of the 60 years of Concession Period.