India Will Build First Oil Reserve Facility
April 19, 2010
India aims to build its first strategic oil reserve facility with a capacity of 1.33 million tons at Visakhapatnam by October 2011, said Rajan K. Pillai, chief executive officer of Indian Strategic Petroleum Reserve Ltd (ISPRL). According to Reuters, India plans to build the facilities at three locations in southern India to meet local demand for 14-15 days in case of emergencies. The planned facilities would be in underground rock caverns near the east and west coasts of the country so that they are easily accessible to the refining sector, according to ISPRL''s website. Underground rock caverns are considered the safest means of storing hydrocarbons, the ISPRL website says. ISPRL is owned by the Oil Industry Development Board (OIDB), which, according to its website, is controlled by India Oil Secretary S. Sundareshan. The second facility will be built at Mangalore by November 2012, and will have a capacity of 1.5 million tons. A third facility with a capacity of 2.5 million tons will be built at Padur by December 2012.