India's Energy Fortress: Building Six New Strategic Oil Reserves

In a bid to enhance energy security amid global market volatility, the Indian government plans to significantly expand its Strategic Petroleum Reserve (SPR) infrastructure by developing six new underground oil storage facilities. Engineers India Ltd. (EIL) has been appointed to prepare detailed feasibility reports (DFRs) for the proposed sites, which include a location within the Mangalore SEZ in Karnataka and salt caverns in Bikaner, Rajasthan.

This expansion aims to increase India’s reserve capacity to cover 90 days of net crude oil imports, in line with International Energy Agency (IEA) recommendations. Currently, India maintains 5.33 million tonnes (MT) of emergency crude reserves across three locations: Vishakhapatnam (1.33 MT), Mangaluru (1.5 MT), and Padur (2.5 MT). A second phase is underway, adding 6.5 MT of capacity in Odisha and Karnataka through a public-private partnership (PPP) model.

The average cost of developing 1 MT of SPR capacity is estimated at ₹2,500 crore. While India continues to invest in renewable energy, experts underscore the ongoing need for petroleum products over the next 15 years, making SPR expansion a strategic necessity. The government is also exploring international collaborations to help fund the high capital costs associated with the program.

News by Rahul Yelligetti.