Abu Dhabi
The first consignment of 2 million barrels of crude oil from Adnoc (Abu Dhabi National Oil Company) to be stored in India’s Strategic Petroleum Reserves at Mangalore set sail on Saturday.
Adnoc will store a total of 5.86 million barrels of crude in the SPR facility at its own cost. This is the first investment by a foreign company in India’s strategic reserves programme.
“The strategic reserve will provide a boost to India’s energy security and help us deal with supply side disruptions. While part of the stored oil will be used for commercial purposes by Adnoc, the major part will be purely for strategic purposes,” said Indian oil minister Dharmendra Pradhan, who witnessed the loading of the oil along with Dr Sultan Ahmad Al Jaber, UAE Minister of State and Adnoc Group CEO.
Indian energy consumption is expected to more than double by 2040, accounting for 25 per cent of the rise in global energy, and the largest absolute growth in oil consumption.
India imports 82 per cent of its crude oil needs, 8 per cent of which is supplied by the UAE.
In addition to helping to ensure energy security, the oil storage facilities enable Adnoc to efficiently and competitively meet market demand across Asia, according to a statement from Adnoc.
“With this partnership, new market opportunities will open up for Adnoc, as we not only help to ensure the energy security of the UAE’s largest trading partner, but also gain greater access to one of the fastest-growing markets for high-quality crude oil. Our increased presence in India, will also catalyse demand for our own refined and petrochemical products,” said Dr Al Jaber.
