ONGC Approves Strategic Crude Reserve Expansion

Oil and Natural Gas Corporation Limited (ONGC) granted in-principle approval on 9 July 2026 for a 1.75 million metric tonnes Strategic Petroleum Reserve at Mangaluru in Karnataka. The project is a Phase-I extension and falls under India’s strategic crude storage network, which is managed by Indian Strategic Petroleum Reserves Ltd. (ISPRL).

Strategic Petroleum Reserve in India

A Strategic Petroleum Reserve is an emergency stockpile of crude oil maintained for supply security during disruptions in imports or global market shocks. India’s existing strategic crude storage capacity is 5.33 million metric tonnes across Visakhapatnam, Mangaluru, and Padur. This capacity is sufficient for about 9.5 days of crude oil requirement, based on 2019-20 consumption patterns.

ONGC and National Energy Security

ONGC is India’s largest explorer and is the first public sector energy company in the country to directly fund the creation of a strategic crude storage facility. The expansion is linked to energy security planning under the Ministry of Petroleum and Natural Gas. The project is associated with supply vulnerabilities exposed during the Iran conflict and other recent geopolitical disruptions in global crude markets.

Location and Institutional Framework

Mangaluru is one of the three existing Indian locations for strategic crude storage, along with Visakhapatnam and Padur. ISPRL is the government-owned company responsible for developing and operating India’s strategic petroleum reserve facilities. The Mangaluru expansion will add to the reserve network already used for emergency crude storage and supply management.

Important Facts for Exams

• India’s strategic petroleum reserve network currently has 5.33 million metric tonnes of storage capacity.
• Visakhapatnam, Mangaluru, and Padur are the three existing strategic crude storage locations in India.
• ONGC stands for Oil and Natural Gas Corporation Limited.
• ISPRL stands for Indian Strategic Petroleum Reserves Ltd.

Commercial Use and Regulatory Context

ONGC’s board also directed its management to discuss broader commercial utilisation of the reserves with the Government of India. The July 2026 filing did not disclose the project cost or the completion timeline. Earlier estimates in June 2026 placed the project cost at about US$1.6 billion.