Context
The Union Government has announced that 50% of ONGC’s upcoming 1.75 Million Metric Tonne (MMT) crude oil storage facility at Mangaluru will be reserved as a Strategic Petroleum Reserve (SPR). The remaining capacity will be used by ONGC for commercial operations, strengthening India’s energy security.
Explanation
- Strategic Petroleum Reserve (SPR) is a stockpile of crude oil maintained by a country to meet emergency requirements during wars, natural disasters or global supply disruptions.
- India depends on imports for over 85% of its crude oil needs, making energy security a strategic priority.
- Crude oil stored in underground rock caverns is safer, economical and suitable for long-term storage than surface tanks.
- India’s existing SPR facilities are located at Visakhapatnam (Andhra Pradesh), Mangaluru (Karnataka) and Padur (Karnataka), managed by Indian Strategic Petroleum Reserves Limited (ISPRL).
- The government is expanding SPR capacity through Phase II projects at Chandikhol (Odisha) and Padur (Karnataka).
- Strategic reserves differ from commercial reserves: SPR is released only during national emergencies, whereas commercial stocks are maintained by oil companies for routine market operations.
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