(EnergyAsia, February 7 2017, Tuesday) — The Indian government has announced plans to build two oil storage terminals with a combined 10-million-tonne capacity that will boost the national total to 15.33 million tonnes.
Finance Minister Arun Jaitley told Parliament last week that the government will build a 4.4-million-tonne terminal in Chandikhole in the northeastern state of Odisha and a 5.6-million-tonne terminal in Bikaner in Rajasthan state in the country’s northwest. He did not disclose the projects’ estimated cost and completion deadline.
The government will offer tax incentives for oil traders to use the terminals, said Mr Jaitley.
The new projects will form part of the second phase build-up of India’s strategic crude oil reserves following the recent completion of the first phase of underground storage caverns at Visakhapatnam in the east coast state of Andhra Pradesh, and at Mangalore and Padur in Karnataka on the west coast.
Padur has the largest capacity of 2.5 million tonnes, followed by Mangalore (1.5 million tonnes) and Visakhapatnam (1.33 million tonnes). Their combined capacity will hold enough crude oil to meet 10 days of India’s consumption.