Now Reading: ONGC to reserve half of Mangaluru oil storage for strategic reserves
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ONGC to reserve half of Mangaluru oil storage for strategic reserves
ONGC will reserve half of its 1.75 MMT oil storage facility in Mangaluru for strategic petroleum reserves, Union Minister of State for Petroleum Suresh Gopi told the Rajya Sabha on Monday. The…
The Story in Brief
ONGC will reserve half of its 1.75 MMT oil storage facility in Mangaluru for strategic petroleum reserves, Union Minister of State for Petroleum Suresh Gopi told the Rajya Sabha on Monday. The remaining capacity will be used for commercial operations, and the project is fully funded by the state-owned explorer.
India’s current crude oil and petroleum product storage can meet 74 days of net crude import requirements, Gopi said. The government plans to build an additional 6.5 MMT capacity, including 4 MMT at Chandikhol in Odisha (with an estimated cost of Rs 9,000 crore) and at Padur in Karnataka.
The Indian Opinion
The government's push for strategic oil storage is prudent for energy security, but the numbers demand scrutiny: 74 days of import cover is modest, and building 6.5 MMT at Rs 9,000 crore for Chandikhol alone raises questions about cost efficiency. The project's completion timeline and actual cost will test whether this is a well-executed plan or just a headline.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
