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India’s quest for energy security is taking a new turn, with state-run Indian Strategic Petroleum Reserves Ltd (ISPRL) exploring the possibility of leasing crude oil storage facilities in Southeast Asia. According to sources, Singapore, Japan, and South Korea are the frontrunners, chosen for their strategic location, strong logistics infrastructure, and economic competitiveness.

The decision on the final location will hinge on the commercial viability of leasing storage space. Currently, India relies on its own underground caverns at Visakhapatnam, Mangalore, and Padur for strategic crude oil reserves. However, these facilities hold only enough oil to meet the country’s needs for about 10 days.

This initiative aligns with India’s broader goal of bolstering its energy security. By storing crude oil reserves overseas, India can potentially mitigate the risks associated with supply disruptions and price fluctuations in the global oil market. Additionally, geographically dispersed storage locations could offer greater flexibility in sourcing and distribution.

While the details are still under wraps, this move by ISPRl signifies India’s proactive approach to securing its energy future. Leasing storage in Southeast Asia could offer a cost-effective solution to enhance the country’s oil reserves and safeguard its energy independence.