India races to expand strategic petroleum reserves

Working with Lanka and UAE to use WW II-era oil tanks in Trincomalee

- BY S VENKAT NARAYAN

Deep underground in secretive caverns lies India's insurance against energy catastrophe: massive stockpiles of crude oil, untouched until a crisis strikes. But are they enough to safeguard the world's third largest oil consumer?

For a nation that imports 85 per cent of its oil, Strategic Petroleum Reserves are not a luxury. They are essential. A single global disruption could leave tankers stranded, fuel pumps dry, and factories paralysed.

These government-held stockpiles serve as a crucial lifeline when the world stops running.

The concept emerged from the oil crises of the 1970s, when turmoil in West Asia revealed oil's power to cripple even mighty nations. In response, the International Energy Agency (IEA) was born in 1974, with member countries pledging to maintain at least 90 days' worth of oil imports.

India's serious commitment began only in 2004 with the creation of Indian Strategic Petroleum Reserves Limited. Today, three massive underground vaults anchor the country's energy security: Visakhapatnam in Andhra Pradesh holds 1.33 million tonnes, Mangaluru in Karnataka stores 1.5 million, and Padur, also in Karnataka, stashes 2.5 million tonnes. Combined, this provides just under 10 days of the nation's oil needs.