Two more strategic crude oil reserves may come up

MANGALURU: There is a proposal before the Union government to build two more strategic crude oil storages in the country in addition to the ones at Visakhapatnam, Mangaluru and Padur (near Udupi), according to a senior official of the Indian Strategic Petroleum Reserves Ltd (ISPRL).

Replying to a question at a press conference here on Wednesday, Rajan K. Pillai, Chief Executive Officer and Managing Director, ISPRL, said the two reserves have been planned at Chandikhol in Orissa and Bikaner in Rajasthan with a total capacity to store 10 million metric tonnes of crude. It might require an investment of Rs. 10,000 crore. The government will take a final decision on this.

Of the existing storages, the one at Visakhapatnam has been commissioned. Storing crude on a trial basis in the facility in Mangaluru began on Wednesday. The facility coming up at Padur is expected to be ready by this year-end. The total cost of the three projects is Rs. 4,098.35 crore.

The approved cost estimates for Visakhapatnam, Mangaluru and Padur are Rs. 1,178.35 crore, Rs. 1,227crore and Rs. 1,693 crore, respectively.

Referring to the storing of crude in underground rock cavern he said, “This type of technology is not there in many countries.”

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Printable version | Apr 5, 2020 6:13:13 AM |

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