labels: Economy - general
Construction of strategic crude oil reserve at Vizag under way news
15 April 2008

To secure the country's energy requirements, the centre is locating strategic oil reserves at Visakhapatnam, Mangalore and Padur..

The setting up of the strategic reserves as a step towards energy security for the rapid economic growth of the country, the working group on petroleum and natural gas for the XI Plan had mooted locating such strategic reserves.

Responding to a question in the Rajya Sabha today, minister of petroleum and natural gas Murli Deroa said that the construction of the reserves at Visakhapatnam has already commenced and tenders for pre-qualification of bidders are being issued for the Mangalore Project, with construction scheduled to commence during the current financial year.

At Padur pre-construction such as survey for land acquisition, application for environmental clearances and pipeline route survey is also in progress.

The three sites will together hold 5 million metric tons (MMT) of crude oil reserves, which is equivalent to about 14 days cover on the basis  of consumption and 19 days' cover on the basis of net import in 2006-07.

The government has approved creation of a total of 15 MMT strategic storage capacity which will be executed  in phases, after completion of the ongoing first phase of 5 MMT capacity.

In conjunction with the tankage capacity available with the public sector oil companies, the strategic reserves will enable the country to deal with situations of short-term disruptions in supply of crude oil due to any emergency from a global event or in helping the supply position during / after a natural calamity.


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Construction of strategic crude oil reserve at Vizag under way