DBFOT partnership sought for SPR Phase II
The Union Cabinet has approved the filling of Padur Strategic Petroleum Reserves (SPR) at Padur in Karnataka state by overseas National Oil Companies (NOCs).
The Padur facility is an underground rock cavern with a total capacity of 2.5 million metric tonnes (MMT) having four compartments of 0.625 MMT each.
The filling of the SPR under PPP model is being undertaken to reduce budgetary support of Government of India, said a statement from the Public Information Bureau on 8 Nov 2018.
The Indian Strategic Petroleum Reserves Ltd (ISPRL) has constructed and commissioned underground rock caverns for storage of total 5.33 MMT of crude oil at three locations namely 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 95 days of India’s crude requirement according to the consumption data for FY 2017-18.
The Phase I cost US$600 million.
The Government has given ‘in principle’ approval in June 2018 for establishing additional 6.5 MMT SPR facilities at Chandikhol in Odisha and Padur in Karnataka, which is expected to augment India’s energy security by 11.5 days according the consumption data for FY 2017-18.
The Phase II, estimated to cost US$1.6 billion, is on a design, build, finance, operates and transfer (DBFOT) basis in partnership with private sector investors.
Investors will have a right to the stored crude oil with the Indian Government holding first right of refusal on the inventory in term of exigencies. fiinews.com