Mangaluru: In a significant step towards enhancing India’s energy security, the Oil and Natural Gas Corporation (ONGC) has granted in-principle approval for the expansion of the strategic petroleum reserve in Mangaluru. The proposed underground storage facility will have a capacity of 17.5 lakh metric tonnes (MT), substantially increasing the country’s emergency crude oil storage capability.

The ONGC Board has also approved a proposal seeking government support to enable greater commercial utilisation of the strategic reserve through an appropriate regulatory framework. The expansion is expected to strengthen India’s strategic petroleum storage network, which is managed by the Indian Strategic Petroleum Reserves Limited (ISPRL).

The decision assumes added importance against the backdrop of rising geopolitical tensions across the world and continued concerns over global crude oil supply disruptions through the Strait of Hormuz, a key maritime route for international oil trade.

Mangaluru to play a bigger role in India’s energy security

Mangaluru is already one of India’s most important strategic petroleum storage centres and is home to Mangalore Refinery and Petrochemicals Limited (MRPL), an ONGC subsidiary that operates a refinery with a capacity of 3 lakh barrels per day.

The proposed expansion is expected to significantly enhance the country’s ability to maintain emergency crude oil reserves that can be utilised during supply disruptions or international crises.

Strategic petroleum reserves are maintained to ensure uninterrupted availability of crude oil in the event of geopolitical conflicts, natural disasters, or disruptions to global shipping routes. Expanding these reserves is considered an important component of India’s long-term energy security strategy.

Government support proposed for commercial utilisation

Along with approving the expansion in principle, the ONGC Board has endorsed a proposal seeking government support to facilitate commercial utilisation of the additional storage capacity through suitable regulatory mechanisms.

Industry experts believe that allowing greater commercial use of strategic storage infrastructure can improve operational efficiency while ensuring that emergency reserves remain available whenever required.

The proposal is expected to be taken up with the Central Government for further consideration.

Existing underground storage network

The coastal Karnataka region already hosts some of India’s largest underground petroleum storage facilities managed by ISPRL.

At Permude near Mangaluru, crude oil is stored in massive underground rock caverns designed to safely preserve strategic petroleum reserves. Another major underground crude oil storage complex is located at Padur in neighbouring Udupi district.

Both storage systems are connected through an underground pipeline network, enabling efficient movement of crude oil between the facilities whenever necessary.

At the Mangaluru facility, one underground cavern has been allocated to MRPL for operational purposes, while another has been leased to the Abu Dhabi National Oil Company (ADNOC) as part of international energy cooperation.

LPG storage strengthens regional infrastructure

Apart from crude oil storage, Permude also houses one of India’s major underground LPG storage facilities.

The Hindustan Petroleum Corporation Limited (HPCL) operates an underground LPG cavern at Permude, which was dedicated to the nation last year. The facility further enhances the region’s strategic importance in India’s energy infrastructure by ensuring secure storage of liquefied petroleum gas.

Together, the crude oil and LPG storage facilities make coastal Karnataka one of the country’s most critical energy hubs.

Current storage capacities

The existing underground petroleum storage facilities in the coastal region include:

  • Permude (Crude Oil): 1.5 million metric tonnes capacity across two underground caverns.
  • Padur (Crude Oil): 2.5 million metric tonnes capacity across four underground caverns.
  • Permude (LPG): 80,000 metric tonnes capacity across two underground caverns.

With the proposed addition of 17.5 lakh metric tonnes, India’s strategic petroleum reserve capacity in the region will increase substantially, further strengthening the country’s preparedness against global energy supply disruptions.

Strategic importance amid global uncertainty

The approval comes at a time when international energy markets continue to remain volatile due to geopolitical conflicts and concerns over maritime trade routes, particularly through the Strait of Hormuz, which handles a significant share of the world’s crude oil shipments.

Expanding strategic petroleum reserves enables India to better manage supply shocks and reduce the impact of sudden disruptions in crude imports.

The proposed expansion is also expected to reinforce Mangaluru’s position as one of India’s foremost strategic energy centres, complementing the operations of MRPL, ISPRL and other petroleum infrastructure in the region.

Once the project receives the necessary approvals from the Government of India, it is expected to play a crucial role in strengthening the country’s long-term energy resilience and emergency preparedness.