India plans to build first commercial crude storage
India plans to build first commercial crude storage
Current Affairs Daily Articles & Editorials
La Excellence IAS Academy | April 4, 2024
| Syllabus: GS-III; Subject: Economy; Topic: Industry and Industrial policies, Issue: Strategic petroleum reserves |
Context: Indian Strategic Petroleum Reserves Ltd. (ISPRL) has invited bids for constructing 2.5 million tonnes of underground storage.
Gist:
- India plans to build its first commercial crude oil strategic storage.
- It is part of efforts to shore up stockpiles as insurance against any supply disruption.
Strategic petroleum reserves (SPRs)
- SPRs are essentially stockpiles of crude oil that governments maintain for price stabilisation and energy security.
- India’s existing SPR facilities have a combined storage capacity of 5.33 million Metric Tonnes (MMT) of crude oil.
- Storage Locations: These underground storage facilities are spread across two states:
- Visakhapatnam, Andhra Pradesh (1.33 MMT capacity)
- Mangalore, Karnataka (1.5 MMT capacity)
- Padur, Karnataka (2.5 MMT capacity)
Prelims Connect:
| Indian Strategic Petroleum Reserves Ltd. (ISPRL)
· Plays a vital role in ensuring India’s energy security by storing crude oil for emergencies. ● Established in 1998 as a special purpose vehicle under the Ministry of Petroleum and Natural Gas. ● Wholly owned subsidiary of the Oil Industry Development Board (OIDB). ● Objective: To construct and manage strategic petroleum reserves (SPRs) to mitigate the impact of global oil price fluctuations and supply disruptions. |
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