SPMs for delivering oil to rock caverns
The cabinet has approved additional 6.5 Million Metric Tonne (MMT) Strategic Petroleum Reserve (SPR) facilities in rock caverns at Chandikhol in Odisha and Padur in Karnataka.
The two SPRs will have dedicated SPMs (Single Point Mooring).
The Chandikhol and Padur facilities will holding capacities of 4 MMT and 2.5 MMT, respectively.
The two additional SPRs were announced in the 2017-18 budget.
The facilities will be built under Public Private Partnership model, terms and conditions of which would be determined by Ministry of Petroleum and Natural Gas in consultation with Ministry of Finance.
Road shows will be held to assess market requirements and investors’ response to the projects.
The Indian Strategic Petroleum Reserves Ltd, a special purpose vehicle, has already built rock caverns for storage of 5.33MMT of crude oil at three locations — Vishakhapatnam (1.33 MMT), Mangalore (1.5 MMT) and Padur (2.5 MMT).
The total 5.33 MMT capacity under Phase-I of the SPR programme is currently estimated to supply approximately 10 days of India’s crude requirement according to the consumption data for FY2016-17. The 6.5 MMT SPR facilities will supply for about 12 days. fiinews.com
