India to lease out space in strategic underground oil storages to local, global firms
The Government of India has decided to lease out the space in the underground rock caverns, considered as the safest means of storing hydrocarbon, to domestic and international firms to store oil, which it had earlier planned to fill as part of its strategic petroleum reserve.
A report by PTI cited a top executive saying shortly an expression of interest for leasing out of the storages would be floated.
Change of mind
In the Union Budget 2023-24, the Indian government had announced a plan to purchase crude oil worth 50 billion rupees ($601.78 million) for caverns in the southern cities of Mangalore and Visakhapatnam, but keeping in mind the emerging trends in global oil markets, the finance ministry, in January this year, said India has deferred the plan to fill parts of its strategic petroleum reserve.
Where are these oil reserves situated?
Strategic underground storages have been built at three locations in southern India – Visakhapatnam in Andhra Pradesh, Mangalore, and Karnataka’s Padur – to store 5.33 million tonnes of oil that can be used in any emergency situation like supply disruption or war.
They have been built by India Strategic Petroleum Reserve Ltd.
