ONGC Approves 1.75 MMT Strategic Petroleum Reserve Expansion at Mangaluru, Karnataka
State-run Oil and Natural Gas Corporation (ONGC) has approved the development of a 1.75 million metric tonne (MMT) strategic petroleum reserve at Mangaluru, Karnataka, marking the first instance of the company funding such a facility. The ONGC board has granted in-principle approval for the Phase-I expansion of the Mangaluru reserve and associated infrastructure, in line with directions from the Ministry of Petroleum and Natural Gas. Project cost and timelines have not been disclosed.
The proposed facility will be developed as an extension of the existing strategic reserve at Mangaluru and will add 1.75 MMT to the country's crude storage capacity. India currently maintains about 5.33 MMT of strategic crude storage across facilities at Visakhapatnam, Mangaluru and Padur, managed by Indian Strategic Petroleum Reserves Limited (ISPRL). The government has also approved a second phase of expansion, including additional capacity at Padur and a new facility at Chandikhol in Odisha.
ONGC has indicated it will engage with the government to explore broader commercial utilisation of the Mangaluru facility, subject to regulatory approvals. The site already hosts crude stored by the Abu Dhabi National Oil Company under arrangements allowing partial commercial use while retaining strategic access.
The expansion comes amid heightened geopolitical uncertainty in global oil markets, reinforcing the role of strategic reserves in ensuring supply continuity for India, which depends on imports for over 88% of its crude oil requirements. The project forms part of ongoing efforts to strengthen the country's energy security infrastructure alongside rising domestic demand.