India: Oil Collaboration ISPRL Announces Unloading of Maiden Crude Oil Shipment from Adnoc for Strategic Reserve
The move comes in the background of a deal signed between both the companies for storage of 5.86 million barrels of Adnoc’s crude oil in underground facilities at Mangalore, Karnataka. The first shipment was of approximately 2 million barrels of crude oil.
Abu Dhabi/UAE – A delegation from the Abu Dhabi National Oil Company (Adnoc) recently attended a special event at the Karnataka oil storage facility, in the Indian city of Mangalore, to celebrate the unloading of the first cargo of Adnoc’s crude oil sent to the Indian Strategic Petroleum Reserves Ltd (ISPRL).
The cargo, which was loaded in Abu Dhabi at an event witnessed by H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and Adnoc Group CEO, and H.E. Dharmendra Pradhan, Indian Minister for Petroleum and Natural Gas, arrived in Mangalore following a short, six-day voyage.
The agreement between Adnoc and ISPRL, which was initiated in January 2017 during a visit to India by a high-ranking UAE delegation, led by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, covers the storage of 5.86 million barrels of Adnoc’s crude oil in underground facilities, at the Karnataka facility. The first shipment, of approximately 2 million barrels of crude oil, will be followed by further shipments after India’s annual monsoon season.
ISPRL has built and will operate three crude oil storage facilities, constructed in underground rock caverns located on the East and West coasts of India. Crude oil from these caverns can be supplied to Indian Refineries, either through pipelines, or through a combination of pipelines and ships. While part of the stored oil can be used for commercial purposes by Adnoc, the major part will be reserved for strategic purposes.
The International Energy Agency (IEA) forecasts that in India the demand for energy will highly increase as compared to any other country in the period to 2040, propelled by an economy that will grow to more than five-times its current size and by population growth that will make it the world’s most populous country.
Indian energy consumption is expected to more than double by 2040, accounting for 25 % of the rise in global energy, and the largest absolute growth in oil consumption.
India is 82 % dependent on imports to meet its crude oil needs, 8 % of which is supplied by the UAE. In addition to helping to ensure energy security, the oil storage facilities enable Adnoc to efficiently and competitively meet the market demand across Asia.