Oil and Natural Gas Corporation (ONGC) has received in-principle approval from its Board of Directors to develop a 1.75 million metric tonne (MMT) Strategic Petroleum Reserve (SPR) at Mangaluru, designating it a project of national importance in line with directives from the Ministry of Petroleum and Natural Gas (MoPNG). The move, disclosed in a regulatory filing on 11 July, marks a significant expansion of India's crude oil storage infrastructure at a time of heightened global energy uncertainty.

What the Project Entails

The proposed facility will be developed as the Phase-I extension of the existing Mangaluru Strategic Petroleum Reserve and will include all associated infrastructure, according to ONGC's filing. The Board also directed the company to engage with the government on broadening commercial utilisation opportunities for strategic petroleum reserves, along with the necessary regulatory support. No cost estimate or construction timeline has been disclosed by ONGC at this stage.

India's Existing SPR Network

India currently operates strategic crude storage facilities at Mangaluru, Padur, and Visakhapatnam, with a combined capacity of 5.33 MMT. These facilities are managed by the government-owned Indian Strategic Petroleum Reserves Ltd (ISPRL). The existing 1.5 MMT reserve at Mangaluru is split between Mangalore Refinery and Petrochemicals Ltd (MRPL) — an ONGC subsidiary operating a 300,000 barrels-per-day refinery in the city — and Abu Dhabi National Oil Company (ADNOC), which leases the remaining capacity.

The Strategic Context: Hormuz and Beyond

India's push to expand reserves comes amid heightened awareness of supply-chain vulnerability. According to analysis cited in reports, the disruption caused by the blockade of the Strait of Hormuz during the Iran conflict — a chokepoint through which nearly one-fifth of the world's energy supplies pass — has accelerated New Delhi's efforts to strengthen its energy security posture and diversify cooperation partners.

Notably, during Prime Minister Narendra Modi's visit to the UAE earlier this year, ADNOC announced plans to expand its crude oil storage in India to as much as 30 million barrels and explore crude storage at Fujairah as part of India's strategic reserve programme — signalling deepening energy ties between the two nations.

Planned Additions to India's Reserve Capacity

Beyond the Mangaluru expansion, India is reportedly planning to build an additional 4 MMT strategic petroleum reserve at Chandikhol in Odisha and a new 2.5 MMT facility at Padur in Karnataka. Together, these additions would substantially increase the country's total strategic buffer, reducing import-dependency risk in the event of prolonged global supply disruptions.

As geopolitical pressures on energy trade routes persist, India's accelerating SPR buildout reflects a broader national priority: securing uninterrupted crude supply for its rapidly growing refining and consumption base. The pace of regulatory approvals and funding allocation will be closely watched by energy analysts in the months ahead.