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India to build strategic petroleum reserves under Rs 1,150 crore plan

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By NewsGram Staff Writer

To secure India’s energy economy against supply and price fluctuations globally, an additional funding of over Rs.1,150 crore is being provided to Indian Strategic Petroleum Reserves Ltd. (ISPRL).

Through supplementary demands for grant presented to parliament earlier this week, union Finance Minister Arun Jaitley sought an allocation of Rs.1,153 crore for buying crude oil to fill the first strategic crude oil reserve being built at Visakhapatnam by ISPRL.

India plans for a strategic reserve that could hold up to 1.3 million tonnes of crude oil.

Under this plan, the government would set up a Strategic Crude Oil Storage of about 5.33 million tonnes at two other locations in the country — Mangalore (1.5 million tonnes) and Padur (2.5 million tonnes) in the first phase.

The Mangalore and Padur projects, both on the western coast of Karnataka, are nearly complete, awaiting pipeline connections from the nearest ports.

A second phase is also under planning, which seeks to create 12.5 million tonnes storage capacity at Padur, Chandikhol (Odisha), Bikaner (Rajasthan), and Rajkot (Gujarat).

While India currently imports about 80 percent of its oil requirements, the International Energy Agency predicts that by 2020, India could become the world’s largest oil importer.

The current slump in oil prices that have been in steady fall since the later half of last year is considered an opportune time to build up strategic oil reserves.

The India basket of crude oil fell this week to levels around $52 for a barrel of nearly 160 litres.

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U.S. To End Waivers For Iran Oil imports

Oil exports are a key source of revenue for Tehran, which has been hit hard by the reimposition of U.S. sanctions.

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U.S. Secretary of State Mike Pompeo (file photo)
U.S. Secretary of State Mike Pompeo. RFERL

U.S. President Donald Trump has decided not to reissue waivers in May allowing importers to buy Iranian oil without facing U.S. sanctions, the White House said in a statement on April 21.

The United States, Saudi Arabia and the United Arab Emirates “have agreed to take timely action to assure that global demand is met as all Iranian oil is removed from the market,” the White House said.

“This decision is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue,” the statement added.

The decision means sanctions waivers for five nations, including China and India, Japan, South Korea and Turkey, won’t be renewed when they expire on May 2.

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The move is part of the Trump administration’s tough line on Iran. VOA

U.S. Secretary of State Mike Pompeo said Washington has had “extensive and productive discussions with Saudi Arabia, the United Arab Emirates, and other major producers to ease this transition and ensure sufficient supply.”

U.S. Senator Ted Cruz (Republican-Texas) applauded the end of oil waivers for Iran.

“This decision will deprive the ayatollahs of billions of dollars that they would have spent undermining the security of the United States and our allies, building up Iran’s nuclear and ballistic-missile programs and financing global terrorism,” he said.

The move is part of the Trump administration’s tough line on Iran.

“We will continue to apply maximum pressure on the Iranian regime until its leaders change their destructive behavior, respect the rights of the Iranian people, and return to the negotiating table,” Pompeo said in an April 22 statement.

oil-refinery
“This decision is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue,” the statement added. Pixabay

Oil exports are a key source of revenue for Tehran, which has been hit hard by the reimposition of U.S. sanctions.

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Ahead of Washington’s announcement, an unamed Iranian Oil Ministry source told the semiofficial Tasnim news agency that the United States will fail to cut Iranian oil exports to zero.

“Whether the waivers continue or not, Iran’s oil exports will not be zero under any circumstances unless Iranian authorities decide to stop oil exports…and this is not relevant now,” Tasnim quoted the unnamed “informed source” as saying. (RFERL)