India Initiates Construction of First Commercial Crude Oil Strategic Storage at Padur, Karnataka

India is embarking on the construction of its inaugural commercial crude oil strategic storage facility to fortify reserves against potential supply disruptions. Indian Strategic Petroleum Reserves Limited (ISPRL) has issued bids for the development of a 2.5 million-tonne underground storage facility in Padur, Karnataka.

Strategic Petroleum Reserves (SPR) Programme Overview

• Phase I facilities in Visakhapatnam, Mangaluru, and Padur are strategically filled.
• Phase II includes approved projects in Chandikhol and Padur, operating on a Public-Private Partnership (PPP) basis.
• Crude oil storage facilities on India's East and West coasts are housed in secure underground rock caverns, deemed the safest storage method for hydrocarbons.

Role of Indian Strategic Petroleum Reserves Limited (ISPRL)

• ISPRL, a subsidiary of the Oil Industry Development Board (OIDB) under the Ministry of Petroleum & Natural Gas, manages strategic crude oil storage facilities.
• Engineers India Limited (EIL) serves as the Project Management Consultant, overseeing storage operations.
• ISPRL coordinates stock release during supply disruptions through a Government Empowered Committee.

India's initiative underscores the nation's commitment to bolstering energy security through strategic storage infrastructure, ensuring resilience against potential oil supply disruptions.