India’s Strategic Petroleum Reserves (SPRs)

India’s Strategic Petroleum Reserves (SPRs) are currently holding 3.37 million tonnes of crude oil, about two-thirds of their total capacity of 5.33 million tonnes, the Ministry of Petroleum and Natural Gas informed the Rajya Sabha.

The reserves, located in Visakhapatnam, Mangaluru, and Padur, are designed to act as a buffer against short-term supply disruptions, especially significant amid ongoing geopolitical tensions in West Asia.

Current Capacity and Coverage

• Total SPR capacity: 5.33 million tonnes
• Current storage: 3.37 million tonnes
• Coverage at full capacity: ~9.5 days of crude oil demand

India’s SPRs are managed by Indian Strategic Petroleum Reserves Limited, a special purpose vehicle under the Oil Industry Development Board.

Existing Facilities

• Visakhapatnam: 1.33 million tonnes
• Mangaluru: 1.5 million tonnes
• Padur: 2.5 million tonnes

Expansion Plans

In July 2021, the government approved two additional commercial-cum-strategic reserves:

• Chandikhol: 4 million tonnes
• Padur (Phase II): 2.5 million tonnes

There are also proposals to establish reserves in Bikaner and Rajkot, potentially adding another 6 million tonnes to India’s storage capacity.

Strategic Context

India, the world’s third-largest oil consumer, depends on imports for over 88% of its crude oil requirements. The concept of strategic reserves gained global prominence after the 1973 oil crisis.

The International Energy Agency recommends that countries maintain oil reserves equivalent to at least 90 days of net imports. While India is an associate (not full) member, its current total storage capacity stands at about 74 days, including commercial stocks—still below the recommended level.

Source: IE