The UAE’s national oil company Abu Dhabi National Oil Company (ADNOC) agreed to store the crude oil in India’s maiden strategic petroleum storage. The strategic reserve will help guard against the global price shocks & supply distribution.
The decision was taken during the state visit of Crown Prince of Abu Dhabi or Deputy Supreme Commander of the UAE Armed Forces Sheikh Mohamed bin Zayed Al Nahyan to India from 10th February to 12th February 2016.
Highlights of Bilateral Meeting:
• It will take half of the 1.5 million tonne Mangalore facility, that is, 0.75 MT (Six million barrels). ADNOC will use this facility as a warehouse for trading its oil.
• Out of 0.75 Million Tonne, ADNOC agreed to give 2-3rd of the oil to India for free, that is, 0.50 MT will belong to India, which will be used in cases of emergencies.
• UAE will use to stock oil at Mangalore facility when prices are low and supply to its customers when rates are good.
Besides, India also offered UAE refinery projects, petrochemical plans, pipelines and LNG terminals for investment. These include:
• ONGC petrochemical project, Dahej, Gujarat: Offered 26% stake in 700 million US $ project
• BPCL’s Bina refinery, Madhya Pradesh: offered 24% equity in 200 million US $ project that seeks to expand the refining capacity from Six million tons to 7.5 million tones
• HPCL’s petrochemical plant on Andhra coast: Offered 25 to 40% stake in 530 to 850 million US $ project
• UAE can also invest in the planned 60 million tons in Maharashtra and the Jagdishpur Haldia or Paradip Surat gas pipelines.
Besides ADNOC, Kuwait Petroleum Corpration (KPC) has also evinced interest in hiring a part of the maiden strategic storage.
About Indian Strategic Petroleum Reserves LTD
• To store about 5.33 million tonnes of crude oil as strategic reserve, India established a company Indian Strategic Petroleum Reserves Limited (ISPRL).
• ISPRL is a Special Purpose Vehicle and is a wholly owned subsidiary of Oil Industry Development Board.
• Company is involved in managing the construction of underground storage at Visakhapatnam in Andhra Pradesh, Mangalore & Padur in Karnataka. Engineers India Limited (EIL) is the Project Management Consultant for all 3 projects
• The 1.33 million tonnes Visakhapatnam storage and 2.5 million tonnes Padur stockpile together with 1.5 million tonnes Mangalore storage will be enough to meet nation’s oil requirement of about Ten days.
Besides, India is looking at building four more strategic crude oil facilities at Bikaner in Rajasthan, Rajkot in Gujarat, Padur in Karnataka and Chandikhole in Jajpur district of Odisha.
India imports 79 percent of its crude oil needs out of which UEA makes up for 8 per cent of our oil imports.
UAE"s National Oil Company agreed to store the crude oil in India"s Strategic Storage
No comments:
Post a Comment