Govt to tap PPP route for second phase of strategic petroleum reserve
16 October 2018
The centre will adopt the public private partnership (PPP) model for the second phase of the Indian Strategic Petroleum Reserve that will add a total of 6.5 million tonnes to the current oil reserve capacity.
Minister of petroleum and natural gas and skill development and entrepreneurship Dharmendra Pradhan will launch the road show for Phase II of Indian Strategic Petroleum Reserves in New Delhi tomorrow.
The union cabinet had accorded “in principle” approval for Phase-II SPR programme, which involves creation of additional 6.5 million metric tonnes of storage in underground rock caverns and associated facilities at Chandikhol, Odisha (4.0 MMT) and Padur-II, Karnataka (2.5 MMT), in line with the integrated energy policy of the government.
The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved establishment of additional 6.5 Million Metric Tonne (MMT) Strategic Petroleum Reserve (SPR) facilities at two locations, i.e. Chandikhol in Odisha and Padur in Karnataka, including construction of dedicated SPMs (Single Point Mooring) for the two SPRs. The SPR facilities at Chandikhol and Padur will be underground rock caverns and will have capacities of 4 MMT and 2.5 MMT respectively. Government had announced setting up of two additional SPRs during the budget announcement for 2017-18.
In order to explore feasibility of commercialisation of the Phase I SPR at Padur (2.5 MMT) and the proposed Phase II SPRs at Chandikhol, Odisha (4.0 MMT) and Padur II, Karnataka (2.5 MMT), the government now plans to solicit investment partners and pursue the initiatives of Phase II SPRs through PPP mode of implementation for construction, filling, and operation respectively and also filling and operation of the existing Phase I SPR at Padur.
The roadshows ate ment to elicit investor interest and based on the evinced interests, a suitable model for on-boarding of investors/PPP partners will be prepared for an international competitive bidding for wider participation, a government release stated.
The roadshow will outline the Phase I and Phase II SPR programmes along with technical details, plausible financial models and the implementation modalities.