India intends to import around 5.5 million barrels of crude oil after October to partially replenish its Mangalore Strategic Petroleum Reserve (SPR) in southern Karnataka state and may also alter the crude grade at another facility. Because one of the Mangalore reserve tanks is currently empty, oil imports are required. India, the third-largest importer and user of oil in the world, has constructed strategic storage at three locations in southern India: Mangalore, Padur, and Vizag. These facilities can hold up to 5 million tonnes (37 million barrels) of crude oil, which may be used in the event of a supply disruption. After a change in government regulations in 2021, Indian Strategic Petroleum Reserves Ltd (ISPRL), the government
owned firm tasked with managing the SPRs, has began selling from the caverns to neighbourhood refineries. The Mangalore SPR facility comprises two compartments of the same capacity, each holding around 5.5 million barrels. According to the source, one of those that had held Saudi oil is now empty.
After the single point mooring (SPM) facility at the Mangalore port resumes operations in October, this compartment would be filled, the source said. During the monsoon season, the SPM, which is used by very big crude carriers to discharge oil, is normally closed. Abu Dhabi National Oil Co. of the United Arab Emirates has leased the second compartment at the Mangalore SPR. During this fiscal year, which runs through March 31, 2024, the Indian government has set aside 50 billion rupees (about $611.40 million) for its strategic oil imports. According to the source, India will need to purchase around 13 million barrels of oil overall for the SPR because another SPR would run out of fuel later this year.
As part of a plan to lower oil prices worldwide in 2021 that was organised by the US, India released oil from its strategic reserves. ISPRL intends to sell a second batch of 300,000 tonnes of Iraqi Basra crude from the 1.03 million tonne Vizag SPR in southern Andhra Pradesh. By the end of 2023 or the beginning of 2024, the business intends to sell the remaining oil and maybe replace it with another crude grade.
