ONGC Invests $736M in Strategic Crude Storage Amid Energy Security Concerns

India's state-controlled oil producer, Oil and Natural Gas Corp. (ONGC), is taking steps to ensure the country's energy security by creating emergency crude stockpiles. The company plans to spend $736 million on underground caverns in India's south with a capacity of around 13 million barrels.

The move aims to bolster the government's initiative to enlarge its emergency energy reserves, which have become urgent after the Middle East conflict highlighted India's reliance on imports and vulnerability to supply shocks. Currently, India's strategic stockpiles total about 39 million barrels, covering only seven days of import needs.

ONGC is also discussing partnerships with foreign companies to establish a trading operation outside India that would handle crude oil, refined products, and natural gas. The goal is to gain more influence over purchasing, sales, and exposure to price fluctuations.