India’s state-owned Oil and Natural Gas Corporation (ONGC) will allocate half of its planned 1.75 million-metric-tonne oil storage facility in Mangaluru to the country’s strategic petroleum reserves.
The decision effectively adds approximately 875,000 tonnes — roughly 6.5 million barrels — to India’s emergency crude buffer, with the remaining capacity available for commercial operations.
The allocation underscores the Indian government’s prioritization of energy security amid ongoing global supply volatility.
By integrating strategic reserve capacity into a new commercial-grade facility, ONGC aims to optimize infrastructure utilization while meeting state-mandated storage targets.
The Mangaluru site, located on India’s west coast, is strategically positioned to receive crude shipments from the Middle East and Africa, reducing logistical friction for reserve replenishment.
This development follows ONGC’s earlier board approval for the expansion project, which was designed to bolster India’s strategic reserves.