India looks at new strategic oil storages at Chandikhol (Odisha) and Rajasthan

Under Phase II storage program, plans currently are afoot to create Strategic Petroleum Reserves at two locations, namely Chandikhol in Odisha and Bikaner in Rajasthan which entails storage of crude oil in underground rock caverns and underground salt caverns respectively.

India looks at new strategic oil storages at Chandikhol (Odisha) and Rajasthan

After creating strategic petroleum storage facilities at Vizag, Mangalore and Padur, the Ministry of Petroleum & Natural Gas, is now looking at two additional sites in Odisha and Rajasthan — a move that is aimed at ensuring India’s energy security goal.

Strategic petroleum storage provides a country with two fold advantage. Firstly it ensures utilisation of petroleum reserves in times of high oil and gas prices and secondly are also created to prevent any supply disruptions during unforseen events of natural disasters or a war like situation.

Under Phase I storage program, three such strategic storage facilities have been created at Vishakhapatnam, Mangalore and Padur, with a total storage capacity of 5.33 MMT. The storage facilities entails storage of crude oil in underground rock caverns.

Under Phase II storage program, plans currently are afoot to create Strategic Petroleum Reserves at two locations, namely Chandikhol in Odisha and Bikaner in Rajasthan which entails storage of crude oil in underground rock caverns and underground salt caverns respectively.

Government of India is considering the proposal for establishment of Phase II storage program for a total storage capacity of 10.0 MMT which includes 4.4 MMT storage capacity at Chandikhol and 5.6 MMT storage capacity at Bikaner.

In this connection, Secretary, MoP&NG, K.D.Tripathi led a team of senior officials of Indian Strategic Petroleum Reserves Ltd & Engineers India Limited and visited the proposed sites near Chandikhol along with the revenue officials of the State Govt. of Odisha on 2nd September 2016.

As per the studies undertaken for the conceived project, the underground storage facilities at Chandikhol will be created within the available Government owned land parcel and would involve a significant development in the region with the greater objective of Odisha becoming the Energy Gateway of the Eastern and North Eastern Region of India. The estimated capital cost for Chandikhol project is approx. Rs 5000 crores.

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The team along with senior officials of the Jajpur district administration also visited Dankari village under Dharmasala tehsil on Friday afternoon to select around 400 acres for setting up a strategic oil reserve or underground rock cavern.
Local news reports from Jaipur said the aim is to store adequate stock of oil for eight days to meet requirement during any crisis.

“The state government has around 600 revenue land in the foothills of the Dankari. We provided the officials the map and other land records of the area. The area is far away from the human habitation for which they had decided to set up the strategic oil reserve,” said sub-collector, Jajpur, Maheswar Panigrahi.

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