Oil and Natural Gas Corporation Limited (ONGC) has taken a major step toward strengthening India's energy security. The company's Board has granted in-principle approval for the development of a 1.75 Million Metric Tonne (MMT) Strategic Petroleum Reserve (SPR) in Mangaluru, a project that has been designated as a Project of National Importance.
The move is expected to significantly enhance India's emergency crude oil storage capacity while also creating opportunities for commercial utilization in the future.
ONGC Board Approves Strategic Petroleum Reserve Project
During its board meeting held on July 9, 2026, ONGC approved the Phase-I Extension of the Strategic Petroleum Reserve (SPR) at Mangaluru.
The project will be developed in line with the directives issued by the Ministry of Petroleum and Natural Gas (MoP&NG) and will include the construction of additional crude oil storage facilities along with related infrastructure.
Project Highlights
Project: Strategic Petroleum Reserve (SPR) – Phase-I Extension
Location: Mangaluru, Karnataka
Storage Capacity: 1.75 Million Metric Tonnes (MMT)
Category: Project of National Importance
Implementing Agency: ONGC
Guided By: Ministry of Petroleum and Natural Gas (MoP&NG)
Focus on Commercial Utilization
Apart from strengthening emergency oil reserves, ONGC is also exploring commercial opportunities linked to the project.
The company's Board has directed management to initiate discussions with the Government of India regarding regulatory approvals and commercial utilization of the reserve.
This strategy is expected to generate long-term economic value while improving the operational efficiency of the strategic storage infrastructure.
What Is a Strategic Petroleum Reserve?
A Strategic Petroleum Reserve (SPR) is a large stockpile of crude oil maintained by governments to protect the country during emergencies such as:
Global oil supply disruptions
Wars and geopolitical conflicts
Natural disasters
Sharp fluctuations in crude oil prices
These reserves ensure uninterrupted fuel supplies during periods of international uncertainty and help stabilize the domestic energy market.
Why the Mangaluru SPR Matters
The new 1.75 MMT facility will substantially strengthen India's crude oil storage capacity and reduce the country's vulnerability to global energy shocks.
With rising geopolitical tensions and increasing volatility in international crude markets, expanding strategic reserves has become a key priority for India's long-term energy planning.
The project also aligns with the government's vision of Atmanirbhar Bharat, improving energy resilience while supporting future commercial opportunities.
Strengthening India's Energy Future
Industry experts believe the expansion of the Mangaluru Strategic Petroleum Reserve will reinforce India's energy security framework by ensuring greater preparedness during supply disruptions. Along with boosting emergency crude storage, the project reflects the country's long-term commitment to building a stronger, more self-reliant energy ecosystem.
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