India Plans Strategic Oil Storage Expansion to Buffer Supply Risks

The proposed expansion includes a site in Bikaner, Rajasthan, where feasibility studies are underway, and a facility in Bina, Madhya Pradesh, following a successful pre-feasibility assessment. These projects supplement a broader initiative led by the Oil and Natural Gas Corporation (ONGC) to construct a 13-million-barrel storage facility in Mangaluru, Karnataka.

Minister of State for Petroleum and Natural Gas Suresh Gopi recently confirmed that the Mangaluru site will split its capacity equally between strategic reserves and ONGC’s commercial operations. This push for infrastructure comes as India seeks to insulate its economy from supply shocks, such as those caused by recent disruptions in the Middle East. With an estimated $1.6 billion investment, the government aims to replace unreliable imports with a more robust domestic buffer, reducing the country's vulnerability to global geopolitical instability.