According to OilPrice, India's state-owned Oil and Natural Gas Corporation (ONGC) is expanding the country's strategic oil storage capacity with a new facility at Mangaluru designed to hold approximately 13 million barrels. The move reflects India's growing focus on building reserves to shield against potential supply shocks, particularly as the world's third-largest crude oil importer grapples with geopolitical uncertainties affecting global energy flows.
Recent disruptions to crude shipments through the Strait of Hormuz and regional tensions have prompted India to diversify its energy sourcing strategy and strengthen its buffer against sudden supply interruptions. While record imports from Russia have provided some offset to traditional Middle Eastern supply losses, Indian policymakers recognize that greater storage capacity is essential for economic stability and energy security.
The expansion of strategic petroleum reserves underscores India's broader effort to reduce vulnerability to external shocks and maintain steady fuel supplies for its growing economy. Enhanced storage infrastructure allows the nation greater flexibility in sourcing decisions and provides a cushion during periods of price volatility or geopolitical disruption.