Govt plans to raise country’s strategic crude reserve

Govt plans to raise country’s strategic crude reserve


New Delhi: The government is planning to raise the nation’s strategic crude oil stockpile by three-fold to 15 million tonnes, Minister of State for Petroleum and Natural Gas Dinsha Patel said on 30 August.

“In order to enhance the energy security of the country and to safeguard against short term supply disruptions, government has approved setting up of 5 million tonnes of strategic storage of crude oil," he said in a written reply to a question in Lok Sabha here.

Underground storage to stock a million tonnes of crude oil would be build at Vizag, 1.5 million tonnes at Mangalore and 2.5 million tonnes at Padur, Udipi in Karnataka. The project is likely to be completed by end of 11th Five Year Plan (2012).

“The Government is planning to further enhance strategic reserve capacity to 15 million tonnes in the next phase which will meet our corresponding requirements," he said.

Patel said China imported large quantities of crude oil in December for its strategic stockpile.

“As per the March 2007 FACTS Global Energy Report, 12.4 million barrels of crude were offloaded to the Chinese storage sites of its Strategic Petroleum Reserves at Zhenhai, Zhejian Province in December 2006. This was in addition to the 3 million and 4 million barrels of injections in November 2006," he said.

To a separate question, he said government has authorised GAIL (India) to lay five new natural gas pipelines in the country, including the 876-km long Jagdishpur-Haldia pipeline, which would be completed within 36 months.