The Indian government, through the Special Purpose Vehicle Indian Strategic Petroleum Reserve Limited (ISPRL), has established Strategic Petroleum Reserve (SPR) facilities with a total crude oil storage capacity of 5.33 Million Metric Tonnes (MMT). These facilities are located at Vishakhapatnam (1.33 MMT), Mangaluru (1.5 MMT), and Padur (2.5 MMT).
To further enhance the country’s crude oil storage capacity, the government approved the development of two additional commercial-cum-strategic petroleum reserve facilities in July 2021. These projects will add 6.5 MMT of capacity, with 4 MMT at Chandikhol in Odisha and 2.5 MMT at Padur in Karnataka, under a Public-Private Partnership (PPP) model. The government and Oil Marketing Companies (OMCs) continuously assess the technical and commercial feasibility of expanding storage capacities, and the identification of new sites for additional reserves is an ongoing process.
To ensure a stable and secure crude oil supply while reducing reliance on any single region, Indian Oil Public Sector Undertakings (PSUs) have diversified their crude procurement sources. Currently, India imports crude oil from various regions, including the Middle East, Africa, North America, and South America. Furthermore, to strengthen its liquefied natural gas (LNG) supply chain, the government has diversified LNG imports by adding Australia, the USA, and the UAE as key suppliers. Long-term agreements have also been established to ensure consistent LNG supplies and mitigate price volatility.
In a bid to reduce dependency on fossil fuels, the government has adopted a comprehensive strategy to promote clean energy. This includes increasing the use of natural gas as a fuel and feedstock to transition towards a gas-based economy. Efforts are also being made to encourage the adoption of renewable and alternative fuels such as ethanol, second-generation ethanol, compressed bio gas (CBG), biodiesel, green hydrogen, and electric vehicles (EVs).
To further drive sustainability, initiatives like the Sustainable Alternative Towards Affordable Transportation (SATAT) program have been launched to promote the use of CBG as an automotive fuel. Additionally, the Ethanol Blended Petrol (EBP) Programme encourages the blending of ethanol with petrol, while the Biodiesel Blending Programme promotes mixing biodiesel with diesel.
The government is also focusing on enhancing refinery efficiency, conserving energy, and promoting domestic oil and natural gas production through various policy measures. These multifaceted efforts reflect India’s commitment to ensuring energy security, supporting clean energy transitions, and reducing reliance on fossil fuels.
This information was shared by the Minister of State in the Ministry of Petroleum and Natural Gas, Shri Suresh Gopi, in a written reply in the Lok Sabha.