India builds underground petroleum storage

Dec 15, 2011 12:00 AM

In an effort to increase strategic reserves of petroleum products in the country, government is building a series of underground storage facilities, besides increasing oil and gas production.

Petroleum Minister Jaipal Reddy informed the Lok Sabha during Question Hour that India has 74 days of strategic reserves while it was building a number of underground rock caverns in Vishakapatanam, Mangalore and Padore to store 5.33 mm ton of oil reserves.
There are plans to build additional caverns to store 12.5 mm ton reserves.
The additional facilities are likely to come up in Karnataka, Gujarat, Rajasthan and Orissa where sites are being identified and new technologies explored for the purpose.

In reply to a question, Reddy said he endorsed the concern on rising fuel prices but maintained that government had no control on international prices of oil and gas.
"We should take steps to see that our production is enhanced and alternative steps are explored," he said.
He said that under the new exploration licensing policy, 103 discoveries have been made after eight rounds and six of them have gone into production.

Referring to a pending gas pipeline in his state of Tamil Nadu, M Krishnasswamy alleged that Reliance was more interested in Gujarat and not his state. He wondered whether its licence could be cancelled and awarded to GAIL.
Reddy said since it was a commercial contract, the government had no arbitrary powers and it would ask the regulatory authority to look into the issue.

Market Research

The International Affairs Institute (IAI) and OCP Policy Center recently launched a new book: The Future of Natural Gas. Markets and Geopolitics.


The book is an in-depth analysis of some of the fastest moving gas markets, attempting to define the trends of a resource that will have a decisive role in shaping the global economy and modelling the geopolitical dynamics in the next decades.

Some of the top scholars in the energy sector have contributed to this volume such as Gonzalo Escribano, Director Energy and Climate Change Programme, Elcano Royal Institute, Madrid, Coby van der Linde, Director Clingendael International Energy Programme, The Hague and Houda Ben Jannet Allal, General Director Observatoire Méditerranéen de l’Energie (OME), Paris.

For only €32.50 you have your own copy of The Future of Natural Gas. Markets and Geopolitics. Click here to order now!


Upcoming Conferences
« June 2018 »
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30

Register to announce Your Event

View All Events