Government to build strategic crude oil storage capacity at four new locations.

NEW DELHI: Minister of State for Petroleum & Natural Gas Panabaaka Lakshmi told the parliament that government would set up an additional 12.5 million tonne strategic crude oil storage capacity in the country.

The project, which is being implemented by Indian Strategic Petroleum Reserves Ltd (ISPRL), will be set up in Bikaner, Rajkot, Chandikhol and Padur, she said.

ISPRL has conducted a detailed feasibility study for construction of additional 12.5 million tonne of crude oil storages in phase-II at the four locations, she said.

In the first phase, ISPRL is setting up storage facilities of 5.33 million tonnes of crude oil at Visakhapatnam (1.33 MT), Mangalore (1.5 MT) and Padur (storage capacity: 2.5 MT) to enhance India's energy security.

Laksmhi said the Integrated Energy Policy (IEP-2008) has recommended that India should have crude oil reserves for 90 days as buffer stock for emergency supplies. India imports more than 80% crude oil it processes and any disruption in imports would have adverse impact on its economy.

"The buffer stocks should be used to address short-term price volatility," she said. India currently stores oil for 72 days.

Crude oil,ISPRL, Panabaaka Lakshmi,Integrated Energy Policy.

Source : economictimes.indiatimes.com