India is accelerating the expansion of its strategic petroleum reserve (SPR) network as state-owned Oil and Natural Gas Corporation (ONGC) moves forward with plans to develop a new 1.75 million metric tons underground crude oil storage facility at Mangalore in Karnataka. The project forms part of New Delhi’s broader strategy to strengthen energy security following heightened geopolitical risks and supply disruptions in global oil markets, while significantly increasing the country’s emergency crude storage capacity.
The new Mangalore petroleum reserve project
The proposed cavern, to be built by ONGC, represents the company’s first independently funded strategic petroleum reserve project and will add approximately one-third to India’s existing dedicated emergency crude storage capacity. The facility will complement the country’s current strategic storage sites at Mangalore, Padur and Visakhapatnam, which together can hold around 5.33 million metric tons of crude oil under the management of Indian Strategic Petroleum Reserves Ltd (ISPRL).
The expansion follows a renewed government focus on energy resilience after disruptions to crude supplies through the Strait of Hormuz highlighted the vulnerability of major importing nations. India, the world’s third-largest oil importer and consumer, relies on imports for more than 80% of its crude requirements, making strategic stockpiling a key pillar of national energy policy.
According to ONGC, the company will seek federal approval to allow commercial use of the new storage facility where appropriate, enabling better utilization of the infrastructure while preserving its strategic role. Existing SPR facilities already operate under a similar model, with part of the storage leased to commercial partners such as Abu Dhabi National Oil Company (ADNOC), providing operational flexibility without compromising emergency preparedness.
Location for the new ONGC oil reserve project
The new reserve will be located alongside the 300,000-barrel-per-day Mangalore Refinery and Petrochemicals Ltd (MRPL) refinery, an ONGC subsidiary, creating logistical advantages for crude handling, storage and distribution. The location also strengthens India’s western coastal energy infrastructure, offering direct access to major import routes and refinery capacity.
The Mangalore project also forms part of a much wider expansion program. India plans to develop a further 4 million metric tons of strategic storage at Chandikhol in Odisha and an additional 2.5 million metric ton facility at Padur, more than doubling the country’s strategic reserve capacity over the coming years. These projects are intended to improve the country’s ability to withstand supply interruptions, price shocks and geopolitical crises.
Increasing crude oil storage capacity in India
The reserve expansion is being accompanied by stronger international energy partnerships. During Prime Minister Narendra Modi’s recent visit to the United Arab Emirates, ADNOC announced plans to significantly increase crude storage in India while also exploring complementary storage arrangements in Fujairah. India has similarly strengthened energy cooperation with countries including Japan to support long-term supply security and emergency preparedness.
It is also expected that the petroleum reserve expansion projects across Asia and other major importing regions are to become an increasingly important source of global oil demand through 2028. As governments rebuild emergency inventories following recent geopolitical disruptions, additional purchases are expected to help absorb increased crude production while providing greater stability to international energy markets. This is as oil-related technology development centers continue to advance construction in India, including IndianOil’s TDDC center in Faridabad which is eyeing mid-2027 completion.
Fact sheet for the new ONGC oil reserve project
Location: Mangalore, Karnataka
Project type: Underground crude oil storage cavern
Developer: Oil and Natural Gas Corporation (ONGC)
Reserve operator: Indian Strategic Petroleum Reserves Ltd (ISPRL)
Storage capacity: 1.75 million metric tons (approximately 13 million barrels)
Purpose: Strengthen India’s emergency crude oil reserves and long-term energy security
Project status: Announced by ONGC in July 2026; government approvals to follow.
Existing reserves: Mangalore, Padur and Visakhapatnam with a combined capacity of 5.33 million metric tons.
Nearby refinery: Mangalore Refinery and Petrochemicals Ltd (MRPL), 300,000 barrels per day
Commercial model: ONGC intends to seek approval for commercial utilization of part of the storage while retaining its strategic function.
Future expansion: Additional strategic storage planned at Chandikhol (4 million metric tons) and Padur (2.5 million metric tons).
Key objective: Improve resilience against global oil supply disruptions and geopolitical risks.
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