India Expands Strategic Petroleum Reserves to Boost Energy Security

The Government of India is expanding its strategic petroleum reserves to mitigate energy security risks following supply disruptions at the Strait of Hormuz. The national authority aims to increase storage capacity from the current 5.3 million metric tons, which covers only eight days of demand, toward a global standard of 90 days.

As part of this expansion, the Oil and Natural Gas Corporation is developing a $1.6 billion storage site in Mangaluru, Karnataka. This facility will hold approximately 13 million barrels, divided equally between strategic reserves and commercial operations. Indian Strategic Petroleum Reserves Ltd is simultaneously finalizing feasibility studies for two additional facilities located in Bikaner, Rajasthan, and Bina, Madhya Pradesh.

These initiatives complement ongoing Phase-II projects. The government has already acquired 400 acres of land for reserves in Chandikhol, Odisha, and signed a concessionaire agreement in October 2025 for a project in Padur, Karnataka.