Chinese oil major Petrochina is among the global companies that have expressed interest in building new strategic petroleum reserves (SPRs) in India, India’s junior oil minister said on Thursday.
Global oil giants invest in India’s strategic oil reserves
During two roadshows organized to seek private investment for the construction of the strategic oil reserves, global companies including BP, Shell and traders Trafigura, Vitol, Glencore, Vopak and KNOC expressed interest, said Rameswar Teli. India, the world’s third-largest oil importer and consumer, has 5.55 million tonnes of crude reserves at three sites in southern India.
In 2021, the Indian cabinet approved the construction of two further SPRs with the help of private companies: a 6.5 million tonne facility at Chandikhol, in the eastern state of Odisha, and a 2.5 million tonne cavern at Padure, in the southern state of Karnataka. RPDs would be owned by the federal government. The government would hold the first claim on crude oil, in the event of a shortage, Mr. Teli said in a written response to a question from legislators.
“The concessionaire will transfer the SPR as well as the single anchor point, the onshore pipeline and the offshore pipeline to the government at the end of the 60-year concession period,” said Mr. Teli.
