News Release Details
India lifts first strategic crude reserve size
New Delhi 28-Aug-2007
India has raised the size of the first phase of a planned strategic crude reserve by 33 percent a government source dose to the project said on Monday, but may not complete the entire storage by its earlier 2010 target. Ten consortia, including firms from Iran, Japan and Asian rival China, have been short listed to build the underground caverns, the source said. "Last week, we took a decision to raise the capacity of (initial) storages to 1,33 million tonnes (9.75 million barrels)/' the official, who did not wish to be identified, told Reuters. He said the government hopes to award a final contract for the construction of the first-phase stores to be build at Vishakapatnam (Vizag) in Andhra Pradesh by mid-November. 'Vizag storages should be built in 36 months - by December 2010," the official said. India for now plans to build a 36.65 million barrel reserve, and had previously targeted the end of 2010 for completion. But the official said that may now "spill over" into 2011 as geological studies at two other sites were yet to be completed, possibly pushing back the tendering process. Once completed the planned total storage will be able to meet 15 days of demand and will be used to hedge against volatility in international crude oil markets and feed domestic markets in case of short-term supply disruptions. The first underground storages will house high sulphur crude, the processing of which is being targeted by refinery expansion in India to earn better margins. Asia's third largest oil consumer has said it eventually wants to double overall strategic capacity to 733 million barrels, with the involvement of the private sector, but has not given a time frame. 10 out of 13 consortia that submitted bids to build-the. Vizag storage have made it to a final shortlist,' including those involving Iranian construction firm Tablieh and China's Sinohydro Corp, the official said.
New Delhi 28-Aug-2007
India has raised the size of the first phase of a planned strategic crude reserve by 33 percent a government source dose to the project said on Monday, but may not complete the entire storage by its earlier 2010 target. Ten consortia, including firms from Iran, Japan and Asian rival China, have been short listed to build the underground caverns, the source said. "Last week, we took a decision to raise the capacity of (initial) storages to 1,33 million tonnes (9.75 million barrels)/' the official, who did not wish to be identified, told Reuters. He said the government hopes to award a final contract for the construction of the first-phase stores to be build at Vishakapatnam (Vizag) in Andhra Pradesh by mid-November. 'Vizag storages should be built in 36 months - by December 2010," the official said. India for now plans to build a 36.65 million barrel reserve, and had previously targeted the end of 2010 for completion. But the official said that may now "spill over" into 2011 as geological studies at two other sites were yet to be completed, possibly pushing back the tendering process. Once completed the planned total storage will be able to meet 15 days of demand and will be used to hedge against volatility in international crude oil markets and feed domestic markets in case of short-term supply disruptions. The first underground storages will house high sulphur crude, the processing of which is being targeted by refinery expansion in India to earn better margins. Asia's third largest oil consumer has said it eventually wants to double overall strategic capacity to 733 million barrels, with the involvement of the private sector, but has not given a time frame. 10 out of 13 consortia that submitted bids to build-the. Vizag storage have made it to a final shortlist,' including those involving Iranian construction firm Tablieh and China's Sinohydro Corp, the official said.