ONGC gets board approval to build new strategic crude oil reserve in Mangaluru

State-run Oil and Natural Gas Corporation (ONGC) on Thursday said its board has accorded in-principle approval for the development of a 1.75 million metric tonne (MMT) Strategic Petroleum Reserve (SPR) at Mangalore under the Phase-I extension.

The company said the project, along with associated facilities, will be developed as a project of national importance in accordance with the directives of the Ministry of Petroleum and Natural Gas (MoPNG).

In a regulatory filing, ONGC said the board also directed the company to take up with the Government of India the issue of broadening commercial utilisation opportunities for the strategic petroleum reserve, along with the required regulatory support.

The approval was granted at the board meeting held on July 9. The company did not disclose the financial outlay, implementation timeline or any other project details in the filing.Notably, in a written reply to the Rajya Sabha on February 9, 2026, the Ministry of Petroleum and Natural Gas informed that the government, through a Special Purpose Vehicle called Indian Strategic Petroleum Reserve Ltd (ISPRL), has established Strategic Petroleum Reserve (SPR) facilities with a total capacity of 5.33 million metric tonnes (MMT) of crude oil at three locations in Andhra Pradesh and Karnataka.

The ministry said the quantity of crude available in the caverns varies depending on market conditions. Currently ( t the time of reply) ISPRL has around 4.094 MMT of crude stock, equivalent to around 77% of the total storage capacity. Of the total storage capacity, 50% is utilised for commercial activities by ISPRL.

The ministry added that in July 2021, the government had also approved the establishment of two additional commercial-cum-strategic petroleum reserve facilities with a total storage capacity of 6.5 MMT in Odisha and Karnataka under the Public-Private Partnership (PPP) mode, at a total project cost of ₹14,527 crore, with the Viability Gap Funding (VGF) capped at 60% of the total project cost.

It also said that the assessment of new sites for establishing additional crude oil reserves is a continuous process.

ONGC shares ended 1.42% lower at ₹243.49 on the NSE on Thursday, July 9.

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