In­dia ap­proves set­ting up of ad­di­tional strate­gic petroleum re­serves

Chemical Industry Digest - - News & Views -

The In­dian Gov­ern­ment has ap­proved the es­tab­lish­ment of ad­di­tional 6.5 mil­lion met­ric tonne (MMT) Strate­gic Petroleum Re­serve (SPR) fa­cil­i­ties at two lo­ca­tions, i.e. Chandikhol in Odisha and Padur in Kar­nataka, in­clud­ing con­struc­tion of ded­i­cated SPMs ( Sin­gle Point Moor­ing) for the two SPRs. The SPR fa­cil­i­ties at Chandikhol and Padur will be un­der­ground rock cav­erns and will have ca­pac­i­ties of 4 MMT and 2.5 MMT re­spec­tively. The gov­ern­ment had an­nounced set­ting up of two ad­di­tional SPRs dur­ing the bud­get an­nounce­ment for 2017-18.

The in-prin­ci­ple ap­proval is to take up the project un­der PPP model to re­duce bud­getary sup­port of the Gov­ern­ment of In­dia. The terms and con­di­tions of such par­tic­i­pa­tion would be de­ter­mined by the Min­istry of Petroleum and Nat­u­ral Gas in con­sul­ta­tion with the Min­istry of Fi­nance af­ter con­duct­ing road shows to elicit re­quire­ments of the mar­ket, in­clud­ing prospec­tive in­vestors.

The In­dian Strate­gic Petroleum Re­serves Ltd (ISPRL) has al­ready con­structed un­der­ground rock cav­erns for stor­age of 5.33 MMT of crude oil at three lo­ca­tions, viz. Vishakha­p­at­nam (1.33 MMT), Man­ga­lore (1.5 MMT) and Padur (2.5 MMT). The to­tal 5.33 MMT ca­pac­ity un­der Phase-I of the SPR pro­gramme is cur­rently es­ti­mated to sup­ply ap­prox­i­mately 10 days of In­dia’s crude re­quire­ment ac­cord­ing to the con­sump­tion data for FY2016-17.

The cab­i­net’s ap­proval for es­tab­lish­ing ad­di­tional 6.5 MMT Strate­gic Petroleum Re­serve fa­cil­i­ties will pro­vide an ad­di­tional sup­ply of about 12 days and is ex­pected to aug­ment In­dia’s en­ergy se­cu­rity. The con­struc­tion phase of the SPRs at Chandikhol and Padur is likely to gen­er­ate sig­nif­i­cant di­rect & in­di­rect em­ploy­ment op­por­tu­ni­ties in the states of Odisha and Kar­nataka.

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