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Strategic oil storage
Why is it in the news ?
- India is seeking investment from Saudi Arabia to build emergency crude reserves that will act as a buffer against volatility in oil prices and supply disruptions.
More in the news
- Saudi's participation in the Indian Strategic Petroleum Reserve program was discussed at a meeting between the kingdom's Energy Minister and his Indian counterpart.
- They also discussed expediting a proposed $44-billion oil refinery project on India's west coast with investment from Saudi Arabian National Oil Co.
- India has built 5.33 Million Tonne (MT) of emergency storage enough to meet its oil needs for 9.5 days.
- It now plans two new reserves with a combined capacity of 6.5 million tons, sufficient to cover an additional 12 days.
- It has allowed foreign oil companies to store oil in the storages on the condition that the stockpile can be used by New Delhi in case of an emergency.
- India, which imports four out of every five barrels of oil it consumes, is expanding its strategic reserves to shield from perennial political risk in the Middle East and Africa.
Source
Economic Times.