What is India's strategic petroleum reserve program?
A1: India's strategic petroleum reserve program involves creating underground storage facilities to store crude oil as a backup supply for emergencies or disruptions in the global oil market.
Where are the existing SPR storage facilities located?
A2: The existing SPR storage facilities are in two states: Vishakhapatnam in Andhra Pradesh, Mangaluru, and Padur in Karnataka. These facilities have a total capacity of 5.33 Million Metric Tonnes (MMT).
When were the existing SPR facilities filled to full capacity?
A3: The existing SPR facilities were filled to full capacity during a period of low crude oil prices.
What new SPR facilities were approved?
A4: In 2021, the Indian government approved the establishment of two additional commercial-cum-strategic facilities with a total storage capacity of 6.5 MMT.
These are located in Odisha and Karnataka. These new facilities will be developed under a Public Private Partnership (PPP) mode.
Who is India interested in involving in its SPR program to strengthen ties?
A5: India is interested in involving Saudi Aramco, a key oil supplier, in its strategic petroleum reserve program.
Who will own the entire SPR facility, and what happens at the end of the concession period?
A6: The entire SPR facility will be owned by the Government of India. The concessionaire, responsible for building and operating the facility, will transfer it, along with related infrastructure like pipelines, to the Government of India at the end of the concession period.
The Indian government has the first right to access the crude oil in case of an oil shortage event.