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India to send tech team to US, Japan on building oil reserves
New Delhi, June 16: India will send a technical team to the US and Japan to prepare a blueprint for building strategic oil reserves for the 70 per cent import-dependant country as an insurance against contingencies like disruption of supplies.
New Delhi, June 16: India will send a technical team to the US and Japan to prepare a blueprint for building strategic oil reserves for the 70 per cent import-dependant country as an insurance against contingencies like disruption of supplies.
"On the invitation of US department of energy, I visited the strategic petroleum reserve at Bryan mound site in Texas last week. They (US) offered to support any industry expertise required by India to create its own strategic petroleum reserves," petroleum minister Ram Naik told reporters here.
Technical teams, comprising experts from Oil and Natural Gas Corporation, Engineers India Ltd and Indian Oil, would visit the US shortly to prepare a blueprint for phased building of 45 days strategic oil reserves, he said.
"US stores 700 million barrels (about 95 million tonnes) reserves in salt caverns. We don't have such natural gifts and therefore facilities at other countries like Japan which stock oil in steel containers would also be examined," he said adding the expert committee would prepare its report in 6 months after which it would go to the cabinet.
The capital cost of building 45 days reserves (15 million tonnes) would be Rs 4350 crore. In the first phase, 15-days reserves are being planned. "The location, sourcing of crude, type of storage, maintenance and how to fund the construction and cost of crude will be explored," Naik said.
The minister said India stores reserves at four sites with current inventory of 604 million barrel (82 million tonnes). The drawdown capability of these four reserves is 4.4 million barrels per day. The US has plans to expand the capacity to 1000 million barrels (135 million tonnes).
Bureau Report
Technical teams, comprising experts from Oil and Natural Gas Corporation, Engineers India Ltd and Indian Oil, would visit the US shortly to prepare a blueprint for phased building of 45 days strategic oil reserves, he said.
"US stores 700 million barrels (about 95 million tonnes) reserves in salt caverns. We don't have such natural gifts and therefore facilities at other countries like Japan which stock oil in steel containers would also be examined," he said adding the expert committee would prepare its report in 6 months after which it would go to the cabinet.
The capital cost of building 45 days reserves (15 million tonnes) would be Rs 4350 crore. In the first phase, 15-days reserves are being planned. "The location, sourcing of crude, type of storage, maintenance and how to fund the construction and cost of crude will be explored," Naik said.
The minister said India stores reserves at four sites with current inventory of 604 million barrel (82 million tonnes). The drawdown capability of these four reserves is 4.4 million barrels per day. The US has plans to expand the capacity to 1000 million barrels (135 million tonnes).
Bureau Report