Government Strengthens Strategic Petroleum Reserves
OIL & GAS

Government Strengthens Strategic Petroleum Reserves

In a major step towards bolstering India's energy security, the Government has established Strategic Petroleum Reserve (SPR) facilities through a Special Purpose Vehicle (SPV)—Indian Strategic Petroleum Reserve Limited (ISPRL). These reserves, with a total capacity of 5.33 Million Metric Tonnes (MMT) of crude oil, are strategically located at:

Visakhapatnam – 1.33 MMT Mangaluru – 1.5 MMT Padur – 2.5 MMT

Expanding SPR Capacity To further strengthen energy resilience, in July 2021, the Government approved two additional SPR facilities with a total storage capacity of 6.5 MMT: ? Chandikhol, Odisha – 4 MMT ? Padur, Karnataka – 2.5 MMT

These facilities will be developed on a Public-Private Partnership (PPP) model, and the Government continues to evaluate new storage sites based on technical and commercial feasibility.

Diversifying Crude Supply Sources To reduce dependency on any single region, Indian Oil PSUs have diversified their crude basket, sourcing oil from: Middle East Africa North & South America

Additionally, LNG imports have been diversified, with Australia, USA, and UAE added as sourcing destinations. Several long-term agreements have also been signed to ensure uninterrupted LNG supply and protection from price volatility.

Promoting Clean Energy & Reducing Fossil Fuel Dependence The Government is aggressively promoting clean energy through a multi-pronged strategy that includes:

Transitioning to a Gas-Based Economy – Encouraging natural gas usage across industries. Alternative & Renewable Fuels – Boosting the adoption of ethanol, compressed biogas (CBG), biodiesel, green hydrogen, and EVs. Energy Efficiency & Conservation – Refinery process improvements and optimisation. Increasing Domestic Oil & Gas Production – Through policy reforms and incentives. Sustainable Alternative Towards Affordable Transportation (SATAT) – Promoting CBG as an automotive fuel. Ethanol & Biodiesel Blending Programmes – Expanding ethanol-blended petrol (EBP) and biodiesel-diesel blending initiatives.

This strategic approach is aimed at reducing India's dependence on imported fossil fuels while ensuring energy security, affordability, and sustainability.

This information was provided by Minister of State for Petroleum & Natural Gas, Shri Suresh Gopi, in a written reply in the Lok Sabh

In a major step towards bolstering India's energy security, the Government has established Strategic Petroleum Reserve (SPR) facilities through a Special Purpose Vehicle (SPV)—Indian Strategic Petroleum Reserve Limited (ISPRL). These reserves, with a total capacity of 5.33 Million Metric Tonnes (MMT) of crude oil, are strategically located at: Visakhapatnam – 1.33 MMT Mangaluru – 1.5 MMT Padur – 2.5 MMT Expanding SPR Capacity To further strengthen energy resilience, in July 2021, the Government approved two additional SPR facilities with a total storage capacity of 6.5 MMT: ? Chandikhol, Odisha – 4 MMT ? Padur, Karnataka – 2.5 MMT These facilities will be developed on a Public-Private Partnership (PPP) model, and the Government continues to evaluate new storage sites based on technical and commercial feasibility. Diversifying Crude Supply Sources To reduce dependency on any single region, Indian Oil PSUs have diversified their crude basket, sourcing oil from: Middle East Africa North & South America Additionally, LNG imports have been diversified, with Australia, USA, and UAE added as sourcing destinations. Several long-term agreements have also been signed to ensure uninterrupted LNG supply and protection from price volatility. Promoting Clean Energy & Reducing Fossil Fuel Dependence The Government is aggressively promoting clean energy through a multi-pronged strategy that includes: Transitioning to a Gas-Based Economy – Encouraging natural gas usage across industries. Alternative & Renewable Fuels – Boosting the adoption of ethanol, compressed biogas (CBG), biodiesel, green hydrogen, and EVs. Energy Efficiency & Conservation – Refinery process improvements and optimisation. Increasing Domestic Oil & Gas Production – Through policy reforms and incentives. Sustainable Alternative Towards Affordable Transportation (SATAT) – Promoting CBG as an automotive fuel. Ethanol & Biodiesel Blending Programmes – Expanding ethanol-blended petrol (EBP) and biodiesel-diesel blending initiatives. This strategic approach is aimed at reducing India's dependence on imported fossil fuels while ensuring energy security, affordability, and sustainability. This information was provided by Minister of State for Petroleum & Natural Gas, Shri Suresh Gopi, in a written reply in the Lok Sabh

Related Stories

Gold Stories

Next Story
Resources

NCC Founder and Padma Shri Awardee AVS Raju Passes Away at 89

Dr Alluri Venkata Satyanarayana Raju, founder and Chairman Emeritus of NCC Limited and a Padma Shri awardee, passed away in Hyderabad on 13 October 2026. He was 89.Born on 18 April 1937 in Antarvedipalem village in Andhra Pradesh's erstwhile East Godavari district, Raju began his entrepreneurial journey in 1956. He established Nagarjuna Construction Company (NCC) Limited in 1978, which subsequently emerged as one of India's leading construction and infrastructure companies.Under his leadership, NCC became a public limited company in 1990 and expanded into one of India's prominent listed constr..

Next Story
Infrastructure Transport

Embraer to Acquire 51 Per Cent Stake in Mahindra Aerospace Arm

Brazilian aerospace major Embraer will acquire a 51 per cent equity stake in Novavayu Aerospace, a step-down subsidiary of Mahindra and Mahindra, under an Investment Agreement notified by the automobile company in an exchange filing. The transaction will give Embraer control of the aerospace business. Following completion of the acquisition, Novavayu Aerospace will cease to be a wholly owned subsidiary and become an associate of Mahindra Defence Systems, which is a step-down wholly owned subsidiary of Mahindra and Mahindra. The agreement is expected to be completed on or before December 1. Mah..

Next Story
Infrastructure Urban

RBI Opens Special Dollar Window for Three State-Run OMCs

The Reserve Bank of India (RBI) has opened a special facility to meet the entire daily US dollar requirements of three public sector oil marketing companies (OMCs), in a move aimed at easing pressure on the Indian rupee. The facility will take effect on October 12, 2026, and remain available until further notice. Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation are eligible to use the arrangement. Under the facility, the RBI will sell US dollars to the three companies through designated banks, allowing them to meet their oil-import payments without sourc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code