NEW DELHI: The first shipload of crude sent by
ADNOC (
Abu Dhabi National Oil Company) for storing in the
Mangaluru underground storage facility arrived on Monday, marking India’s first step towards becoming a regional oil storage and trading hub.
Vessel ‘MT Inspiration’ carrying two million barrels of crude docked at the Mangaluru port after sailing for a week, the oil ministry said. ADNOC had in February signed a deal with
Indian Strategic Petroleum Reserve Ltd to lease storage capacity for six million barrels of crude at the Mangaluru facility.
This is the first investment from the
UAE into an Indian oil project and marks a turning point in Delhi’s buyerseller ties with West Asian oil producers. India wants to reshape its traditional ties with West Asian oil producers into strategic partnership by investing oil projects.
The storage puts on tap oil stock for India, enhancing energy security in times of emergency.