ONGC to build 1.75 million tonne petroleum reserve.

India expands strategic oil storage amid global supply risks.

India’s state‑run Oil and Natural Gas Corporation (ONGC) has unveiled plans to establish a new strategic petroleum reserve with a capacity of 1.75 million metric tonnes (MT) in Mangalore, Karnataka. The initiative is part of New Delhi’s broader push to strengthen energy security amid heightened geopolitical uncertainty in global supply chains.

The Strait of Hormuz blockade, following recent Israel‑US strikes on Iran, underscored India’s vulnerability as the world’s third‑largest oil importer and consumer. Nearly one‑fifth of global energy shipments pass through the narrow waterway, making disruptions there a direct threat to India’s fuel supply. In response, the government has accelerated efforts to expand its emergency stockpile and diversify partnerships.

ONGC confirmed in a stock exchange filing that it will seek federal approval to allow commercial use of the new reserve, emphasizing that the project is being undertaken in the “national interest.” India already permits limited commercial use of its existing reserves, which together hold 5.33 MT of crude across three sites- Mangalore, Padur, and Vizagmanaged by Indian Strategic Petroleum Reserves Ltd (ISPRL).

The Mangalore facility is strategically significant. ONGC’s subsidiary, Mangalore Refinery and Petrochemicals Ltd, operates a 300,000-barrel-per-day refinery nearby and has leased part of the current 1.5 MT storage to Abu Dhabi National Oil Company (ADNOC). The UAE energy giant has signaled plans to expand its footprint in India, announcing earlier this year that it could raise crude storage in the country to 30 million barrels. ADNOC is also exploring additional storage opportunities at Fujairah, in coordination with India’s strategic reserve program.

Beyond Mangalore, India is planning new facilities to bolster its buffer against supply shocks further. These include a 4 MT reserve at Chandikhol in Odisha and a 2.5 MT expansion at Padur in Karnataka. Together, these projects reflect New Delhi’s intent to build resilience into its energy infrastructure while deepening cooperation with partners such as the UAE and Japan.

By expanding its petroleum reserves, India aims not only to safeguard against external disruptions but also to leverage commercial opportunities in global energy markets. ONGC’s latest announcement signals a decisive step toward balancing national security with economic pragmatism in the country’s energy strategy.