India’s state-owned Oil and Natural Gas Corporation (ONGC) just took a major step toward strengthening the country’s energy security. On July 10, 2026, ONGC’s board gave in-principle approval to build a 1.75 million tonne strategic petroleum reserve at Mangaluru, Karnataka, marking a significant expansion of India’s emergency crude oil stockpile.
Why This Matters
India, the world’s third-biggest oil importer, was hit hard by the blockade of the Strait of Hormuz following Israel-U.S. attacks on Iran, with about a fifth of the world’s energy supplies passing through that waterway. This supply shock exposed how thin India’s existing buffer really is — the country’s current national crude reserve stands at 5.33 million tonnes (about 39 million barrels) across three southern locations, which can cover only about eight days of national oil demand.
What’s Being Built
- The new project will be developed as a phase-I extension of the existing Mangaluru strategic petroleum reserve.
- ONGC is the first government-owned company to invest its own funds into strategic stockpiles — previously, state-owned refiners only built commercial storage.
- ONGC will also seek the federal government’s permission to allow commercial use of the new storage, built in the “national interest.”
The Bigger Picture: India’s Storage Expansion
India isn’t stopping at Mangaluru. The government has also approved a second phase of the SPR programme, including expansion of the Padur facility and a new strategic reserve at Chandikhol in Odisha. Two more sites are planned nationally — one with 4 million tonnes capacity and another with 2.5 million tonnes.
International cooperation is also part of the strategy: during PM Modi’s recent visit to the UAE, ADNOC announced plans to raise the crude it stores in India to 30 million barrels, while also considering additional storage for Indian crude at Fujairah, outside the Strait of Hormuz.
This isn’t just a corporate infrastructure decision — it’s a direct policy response to a global energy shock that briefly rattled India’s fuel supply chain. Expect more strategic reserve announcements through 2026 as India works to build a genuine buffer against future disruptions.
