ISPRL Plans New Oil Reserve in Madhya Pradesh

09 Jan 2025 CW Team

The Indian Strategic Petroleum Reserves (ISPRL), a state-owned entity, is considering the establishment of a new strategic reserve in Madhya Pradesh to support refineries in northern India during supply emergencies.

ISPRL has tasked Engineers India Limited (EIL) with conducting a “pre-feasibility study” to explore the possibility of setting up a strategic crude oil reserve at Bina in Madhya Pradesh.

According to an official familiar with the plans, the location is strategic due to its proximity to inland refineries, unlike other existing reserves, which are located near the coast. The EIL study is expected to be completed within the next 3-4 months.

Currently, India’s operational strategic petroleum reserves (SPRs) are situated at Visakhapatnam in Andhra Pradesh, and Mangaluru and Padur in Karnataka, with a combined capacity of 5.3 million tonnes. Further expansion is underway, with plans for reserves totalling 6.5 million tonnes at Padur and Odisha’s Chandikhol.

SPR facilities are essential to maintaining a steady supply of crude oil to refineries, particularly as India’s domestic consumption of petroleum products continues to rise. The country’s strategic reserves remain limited, making the expansion of capacity crucial for meeting emergency requirements. Comparatively, the reserves in the US and China are considerably larger.

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