ADNOC To Occupy 50% Capacity of Oil Reserves at Mangalore
In the beginning of April, 3 three huge ships with crude oil in them will be sent by Abu Dhabi National Oil Company (ADNOC) and this oil will be filling half of the strategic oil reserves that India has in Mangalore. Such a deal, to store the crude oil was signed by ADNOC in the last week to use the reserves in Mangalore for emergency situations.
Dharmendra Pradhan, the Oil Minister of India revealed the information about this deal and added that 5.86 million barrels of oil will be stored in Mangalore reserves and it will be filled by May.
Last year, ADNOC withdrew their lease of storing crude in South Korea and instead signed a deal for storage of crude oil in Mangalore to maintain its stock in the third-largest consumer of oil in the world. A part of these reserves will be used by ADNOC commercially and a significant part will be used for strategic purposes.
In India, strategic crude oil reserves are built in 3 places by Indian Strategic Petroleum Reserves Ltd, eastern coast at Visakhapatnam and western coast at Mangalore and Padur. These ground storage reserves are used in times of emergency. These storages can cope with emergency requirements for 66 days and the strategic reserves for additional 10 days.
The storage at Vishakhapatnam can fulfill crude requirements for 2.5 days, Padur for 4.7 days and Mangalore for 2.8 days. The capacity of Padur and Vishakhapatnam for storing crude oil is 2.5 million tonnes and 1.33 million tonnes respectively.
In Mangalore, there are two sections with a storage potential of 1.5 million tonnes of which one is filled with government-funded oil and the other half will be occupied with the supply from ADNOC.
Out of the 80% crude oil import by India, 8% is provided by the UAE.