ISPRL seeks private firms to build 2.5 mn tonnes petroleum reserve

India is seeking private companies to build and operate a 2.5 million metric ton store for petroleum reserves at Padur in southern Karnataka state, according to a tender posted on the website of Indian Strategic Petroleum Reserve Ltd (ISPRL).

Bids are invited to establish “commercial cum strategic petroleum reserves” including a single point mooring and associated infrastructure on a “design, build, finance, operate and transfer basis”, the notice says. ISPRL, which manages federal oil inventories, operates three strategic petroleum reserves (SPRs) in southern India with a combined capacity of about 5 million tons. Part of that capacity is used for commercial operations by companies including Abu Dhabi National Oil Co (ADNOC).

 In 2021, India overhauled its policy to allow part of SPRs to be used commercially, mirroring a model adopted by countries such as Japan and South Korea that allows private lessees, mostly oil majors, to re-export crude. A pre-bid meeting for the new Padur facility will be held on Jan. 10 and the tender will close on Feb. 3. India, the world’s third-biggest oil importer and consumer, imports over 80% of its oil needs and is raising its SPR capacity to protect against any global supply disruption. India is also planning to build a 4-million-ton SPR at Chandikhol in eastern Odisha state.