India had decided to set up 5.33 Million Metric Tons (MMT) of strategic crude oil storage. Apart from crude, India is also storing nuclear fuel in two locations.
New Delhi (Sputnik) — India received the first parcel of crude oil from Iran to fill its strategic petroleum reserves based in southern India.
“The first parcel of 260,000 MT of Iran Mix crude was received in Very Large Crude Carrier (VLCC) MT DINO and started pumping into the Mangalore cavern for testing the facilities,” reads a statement released by the Mangalore Refinery and Petrochemical Limited.
India decided to set up the reserves at three locations namely, Vishakhapatnam, Mangalore and Padur. Vishakhapatnam facility with 1.33 MMT capacity was commissioned in June 2015. Mangalore facility with capacity of 1.5 MMT started receiving crude today for testing the facility. Padur facility with 2.5 MMT capacity is expected to be ready by the end of this year.
More than half of the strategic reserves will be filled with Iranian oil and the rest the Indian government is in talks with some gulf nations. The India government had decided to set up the strategic storage in case of any external supply disruptions.