What India’s strategic fuel reserve means for Gulf oil producers


What India’s strategic fuel reserve means for Gulf oil producers

Every country needs a strategic fuel reserve to tide over conflict, natural disaster or a potential economic blockade. India is well on its way to doing the same, with a bit of help from its traditional oil suppliers in the Gulf. The move is also opening a window of opportunity for cooperation at various levels.

One major step in this direction was announced earlier this month when India’s minister of state for petroleum & natural gas, Dharmendra Pradhan, informed the country’s parliament about an oil storage and management agreement signed between Indian Strategic Petroleum Reserve (ISPRL) and Abu Dhabi National Oil Company (ADNOC) of the UAE. The agreement was for filling up one of the two caverns at Mangalore Strategic Petroleum Reserve (SPR) facility.

Pradhan said that India has 63 days of existing storage based on estimated commercial reserve of crude oil, petroleum products and gas. The total 5.33 million metric tons (MMT) reserve of the first phase of the program is estimated to supply approximately 10 and a half days of India’s crude requirement based on the consumption during 2015-16. Read More…

Credit By : English.alarabiya.net

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