SPRs are government-owned stockpiles of crude oil held for emergency use during supply disruptions, price shocks, or natural disasters.
Why are SPRs important for India?
India is a major oil importer, making it vulnerable to global supply chain issues. SPRs provide a buffer, reducing the risk of economic disruption due to sudden oil shortages.
How much oil does India currently store in SPRs?
India’s existing SPRs have a combined capacity of around 5.33 million metric tonnes. The new facility at Padur will add significant capacity.
Technical Details
What is the difference between commercial and strategic oil storage?
Commercial storage is typically used by oil companies for their operational needs. Strategic storage is specifically for government use in emergencies.
Why are underground rock caverns used for SPRs?
Underground storage provides natural insulation, security, and a lower environmental impact compared to above-ground tanks.
What are the challenges of building and maintaining SPRs?
Building SPRs requires significant upfront investment and specialized engineering. Ongoing maintenance is vital to ensure the oil remains usable over long periods.
Policy and Economics
How does India decide when to release oil from its SPRs?
The government has established guidelines for utilizing the SPRs, usually triggered by severe supply disruptions or extreme price volatility.
What is the cost of building and maintaining SPRs?
Cost varies based on location and storage type, but it’s a substantial investment. The government weighs this cost against the potential economic benefits of having a secure oil supply.
Does India collaborate with other countries on SPRs?
India is a member of the International Energy Agency (IEA) and participates in coordinated actions for energy security, which sometimes involve the use of SPRs.
About ISPRL
What is ISPRL?
Indian Strategic Petroleum Reserves Limited (ISPRL) is an Indian company responsible for maintaining the country’s strategic petroleum reserves. ISPRL is a wholly owned subsidiary of the Oil Industry Development Board (OIDB), which functions under the administrative control of the Ministry of Petroleum and Natural Gas.
What is the capacity of ISPRL’s emergency fuel store?
ISPRL maintains an emergency fuel store of total 5.33 MMT (million metric tons) or 36.92 million barrels (5.870 million cubic metres) of strategic crude oil enough to provide 9.5 days of consumption.
Where are the strategic crude oil storages located?
Strategic crude oil storages are at three underground locations in Mangalore, Visakhapatnam and Padur (Udupi, Karnataka). All these are located on the east and west coasts of India which are readily accessible to the refineries.
What is the overall reserve oil storage of India?
Indian refiners maintain 64.5 days of crude storage, so India has overall reserve oil storage of 74 days.
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