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Two more underground Oil storage facilities in east and west coast approved

The Government gave its in-principle approval to the proposal, announced in the last year’s Budget, for building two more underground crude oil storages with private partnership to raise emergency stockpile cover by 12 days to 22 days.

The proposal, which was first announced in the Budget 2017-18, envisages building a 4-million tonne (MT) storage at Chandikhole in Odisha and 2.5 MT storage at Padur in Karnataka, finance minister Piyush Goyal told reporters. , in the national capital on June 26

 

This is the Phase-II of the country’s strategic storage plan, first drawn up during the NDA-I government. The cost and timelines of the new storage facilities will be worked out once engineering details are completed.

 

Under the Rs 4,098 crore Phase-I, India has commissioned underground strategic storage of 1.33 MT at Visakhapatnam and 1.5 MT at Mangalore. The first phase is being completed at a cost of Rs 4,098 crore.

 

When the Phase-I of the storage plan was drawn up, it was supposed to have covered around 20 days of consumption. But with growth in consumption, the 5.33 MT Phase-I capacity is estimated to last for 10 days, going by 2016-17 consumption data. The additional 6.5 MT will add 12 days' coverage.


The Budget 2017-18 had identified Chandikhole in Odisha and Bikaner in Rajasthan as the locations. The latter now has been changed to Padur in Karnataka. The approval also includes construction of dedicated single-point moorings that would be used for importing crude oil for the two storage facilities.

 

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