India is setting up strategic crude oil reserves with storage capacity of 5.33 million metric tonnes (MMT) in three locations, Oil Minister Dharmendra Pradhan told parliament.
He said the caverns to store oil were being built in Vishakhapatnam, Mangalore and Padur in the first phase, while project reports have been prepared for building an additional capacity of 12.5 MMT in four other locations.
“At present, there is existing tankage of 14.8 MMT of crude oil and 13.7 MMT of petroleum products in the country which provides coverage of approximately 63 days as per consumption,” Pradhan said in a written response to a question.
He said strategic crude oil reserves being set up in the first phase and in phase will give coverage of approximately 12 days and 28 days respectively as per present consumption.
Vishakhapatnam cavern has been commissioned and filled with crude oil. Mangalore and Padur caverns would be completed by March and May 2016 respectively, he said.
India imports most of its crude requirment, which is likely to gorw in the years ahead. Sharply lower prices provide the country an opportunity to buy and store crude oil for its future needs.