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Govt plans to build crude oil buffer
July 24, 2003 15:28 IST
The government is considering building a strategic storage of crude oil to provide for a 45-day cover, Lok Sabha was informed on Thursday.
Stating that this storage would be built gradually, Petroleum Minister Ram Naik said during Question Hour that in the first phase, 15 days storage has been proposed.
He said action was being taken to finalise the mode of financing, building and operating the storage.
A delegation led by him had visited the strategic petroleum reserve of the United States at Bryan Mound site in Texas last month and a technical team would visit the place shortly, Naik said.
Engineers India Limited had prepared detailed feasibility reports for constructing underground strategic storage of crude oil to provide for 15 days cover, he said, adding the issue of strategic oil storage was being further studied by Indian Oil Corporation and Oil and Natural Gas Corporation.