Why in News?
India has invited Saudi Arabia to participate in the Indian Strategic Petroleum Reserve (SPR) Programme.
FACTS FOR PRELIMS
Saudi Arabia is among India’s largest energy suppliers being the second largest supplier of crude oil and LPG. In 2016-17, India’s crude oil import from Saudi Arabia was 18.5 percent of total imports or 39.5 million tonnes out of total imports of 214 million tonnes.
Currently, India depends on imports for more than 80% of its crude oil needs. Most of these imports come from the Middle East. The demand for crude oil is unlikely to go down in near future. Further, since India is also a regional refining hub, more crude oil is imported than our domestic requirements.
About Strategic Petroleum Reserves
The construction and maintenance the strategic petroleum reserves (SPR) is given to the Indian Strategic Petroleum Reserves Ltd (ISPRL) .
ISRPL is building the underground rock caverns at Visakhapatnam, Mangaluru and at Padur . While Visakhapatnam is located on eastern coast, other two locations Mangalore and Padur (near Mangalore) are located in western coast of Karnataka state.
These three strategic reserves would have the capacity of 5.33 MT. The three projects will store crude oil for 13 days. To ensure energy security for 90 days, additional 13.32 MT capacity storages have to be created. That will be achieved in the second phase. The second phase, which is under planning seeks to create 12.5 MT storage capacity at Padur, Chandikhol (Odisha), Bikaner (Rajasthan) and Rajkot (Gujarat).
Indian Strategic Petroleum Reserves Ltd (ISPRL)
It is a special purpose vehicle of the Oil Industry Development Board, which is a statutory body under the petroleum ministry, created for India’s energy security.
Source-The Economic Times.