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India's first crude oil storage facility being set up
NEW DELHI: India?s first ever-strategic crude oil storage facility is expected to begin functioning from a reserve set up in a southern city of India. The facility is coming up as a part of India?s strategy to increase its oil resources. An official of the petroleum ministry said that the organization was targeting storage of one million tons of crude oil by January 2010. The storage facility that is expected to be situated at Vishakapatnam, a coastal city of Andhra Pradesh. Two more such facilities are expected to be erected in the neighboring state of Karnataka with capacities of 2.5 million tons and 1.5 million tons. Currently India?s refineries can store upto 5.7 million tons of crude oil that corresponds to the domestic demand for 19 days. Latest estimates from the Indian government reveal that the cost of building strategic crude oil reserves will be about $2.5 billion. This includes the cost of five million metric tons of crude oil. India?s current domestic consumption of crude oil annually is about 112 million tons. India imports about 76 percent of its requirements to suffice the domestic demand.