What is the scale and strategic significance of ONGC's newly approved crude reserve expansion project in Mangalore?

ONGC approved an expansion adding 1.75 million tons of strategic crude oil storage capacity in Mangalore, Karnataka — a move explicitly described as being of 'national importance' to strengthen India's energy resilience following the Iran war–induced disruption, including the near-total closure of the Strait of Hormuz. This project marks the first instance of a government-owned company investing its own funds to build strategic (as opposed to commercial) stockpiles, and it will increase holdings managed by Indian Strategic Petroleum Reserves Ltd., which currently operates 5.33 million tons of underground cavern storage across three coastal sites, with two additional sites under construction to add 6.5 million tons more.

How does ONGC’s Mangalore expansion relate to existing infrastructure and international partnerships?

The new caverns in Mangalore are planned to be developed in conjunction with Mangalore Refinery and Petrochemicals Ltd. (MRPL), an ONGC subsidiary operating a 300,000-barrel-a-day refinery in Karnataka; additionally, Abu Dhabi National Oil Co. — the UAE’s largest oil company — is already among firms leasing space in the existing Mangalore caverns, indicating established international utilization of India’s strategic storage infrastructure.

India’s ONGC Approves Project to Expand Strategic Crude Reserves

Jul 9, 2026

ONGC approved expanding India's strategic crude oil reserves by 1.75 million tons in Mangalore to enhance energy security following regional geopolitical shocks. The project adds capacity to national stockpiles managed by Indian Strategic Petroleum Reserves Ltd.

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