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India is set to construct its inaugural commercial crude oil storage facility at Padur, Karnataka, with a capacity of 2.5 million tonnes. The Indian Strategic Petroleum Reserves Ltd (ISPRL) has initiated bids for the construction of underground storage units. Bidders are requested to specify the financial grant needed for the project or the premium they propose to offer. India aims to establish its first strategic petroleum reserve with a private entity by 2029/30. The move aligns with international practices seen in countries like Japan and South Korea, where private lessees, typically oil majors, manage and trade stored crude. India intends to construct two additional SPRs, with the first one, an 18.3 million barrels capacity cavern in Padur, Karnataka, and the second, a 29.3 million barrels SPR in Odisha, permitting private partners to trade all stored oil domestically. However, the government retains priority access to the oil in case of shortages, stated ISPRL CEO L.R. Jain.
