The underground SPR storages have a total capacity of 5.33 Million Metric Tonnes (MMT) of crude oil and are located in 2 States namely (i) Vishakhapatnam in Andhra Pradesh (1.33 MMT), (ii) Mangaluru (1.5MMT) and Padur (2.5 MMT) in Karnataka. Taking advantage of low crude oil prices in April/May 2020, the Strategic Petroleum Reserves were filled to full capacity, leading to notional savings of approximately INR 5000 crore.

In July 2021, Government had approved the establishment of two additional commercial-cum-strategic facilities with total storage capacity of 6.5 MMT at Chandikhol (4 MMT) in Odisha and Padur (2.5 MMT) in Karnataka, on a Public Private Partnership (PPP) mode.

During the two Road shows conducted, global trading companies like M/s Trafigura, BP, SKE&C, Petrochina, GASP, Vopak, Geostock, Monnet, Hyundai, Gulf Energy, Natixis, Vitol, Glencore, DBS, KNOC, M/s Lloyd’s Register, IC-Group, ANU Resources, Shell, Parson Brinkerhoff, Sweco AB, SKANSKA etc., evinced interest in participating in Phase II SPR project

The entire facility shall be owned by Government of India. The Concessionaire shall transfer the SPR along with Single Mooring Point (SPM), onshore and offshore pipeline to the Government of India, at the end of the 60 years of Concession Period. Government of India has the first right to take the crude oil, in case of an Oil Shortage event.

This information was given by the Minister of State in the Ministry of Petroleum & Natural Gas, Shri Rameswar Teli, in a written reply in the Lok Sabha today.

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RKJ

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