Kuwait Petroleum Corporation (KPC), the state-owned oil enterprise of Kuwait
Showing interest in storing crude oil in India’s strategic petroleum reserves, becoming a member of Abu Dhabi National Oil Company (ADNOC) and Saudi Aramco as potential participants within the 2nd phase of the challenge.
The Ministry of External Affairs (MEA) knowledgeable the Parliamentary Committee on External Affairs that details of the second phase of India’s Strategic Petroleum Reserve (SPR) were combined with KPC in November 2022. “Participation of Kuwait Petroleum Company in Phase II of the SPR plan of India is one of the new regions of cooperation being explored,” the ministry stated in a reaction tabled on Tuesday in the Parliament.
KPC’s interest comes as India appears to amplify its strategic crude oil storage ability beneath Phase II, which incorporates constructing caverns with capacities of 4 million metric tonnes (MMT) in Chandikhol, Odisha, and a 2.5 MMT in Padur, Karnataka. These facilities will function under a public-private partnership (PPP) model, as authorized by the Union Cabinet in 2021.
Phase II engagements with Gulf enterprise
The MEA stated that Indian Strategic Petroleum Reserve Limited (ISPRL), the keeper of the country’s strategic reserves, has been interesting Gulf Cooperation Council (GCC) countries for investment in Phase II. Saudi Aramco and ADNOC have additionally been knowledgeable of possibilities to participate.
ISPRL operates current facilities with a blended capability of 5.33 MMT throughout Visakhapatnam (1.33 MMT), Mangalore (1.5 MMT), and Padur (2.5 MMT) as part of the primary phase of the SPR venture. These reserves are meant to function a buffer at some point of deliver disruptions or emergencies.
ADNOC, the national oil corporation of the UAE, has already saved 5.86 million barrels of crude oil in Mangalore. In 2018, it signed an MoU with ISPRL to discover storing additional crude oil on the Padur facility.
Strategic ties with GCC countries
India is predicated closely on energy imports from GCC countries, which account for 35% of its crude oil and 70% of its gas imports. The parliamentary committee had in advance endorsed fast tracking collaboration with GCC countries for Phase II of the SPR venture. The MEA noted that efforts were ongoing to deepen energy cooperation with these countries.
Additionally, ISPRL signed an MoU with Oman Tanking Terminal Company LLC (OTTCO) in June 2023 to explore India’s participation in Oman’s Ras Markaz venture. This initiative targets to extend India’s strategic oil storage past its borders.
“This undertaking offers a distinct opportunity to establish strategic storage beyond India, mainly with an oil-producing countries,” the ministry said in its reaction to the panel.
Broader energy security features
The MEA also addressed the committee’s advice to discover long-term oil and gas supply contracts. India presently has agreements with key Gulf nations, such as Saudi Arabia, the UAE, Qatar, Kuwait, and Bahrain. Efforts are underway to decide a time period agreement with Oman, the 12th largest supplier of oil to India.
“India is actively investigating the opportunity of stepping into a time period settlement with Oman for the sourcing of crude oil,” the MEA stated. It brought that such agreements are part of continuing efforts to safe a different and stable energy supply for the country.
