ONGC Share Price in Focus; Approves Development of 1.75 MMT Capacity Strategic Petroleum Reserves

Oil and Natural Gas Corporation (ONGC) has approved the expansion of India's strategic crude oil reserves by 1.75 million tonnes at Mangalore, Karnataka, as per the exchange filings. 

The project is intended to strengthen the country's energy resilience following supply disruptions during the Iran war, although the company has not disclosed the project's cost or execution timeline. 

Strategic Storage Capacity to Increase 

As per news reports, the new facility will become part of the reserves managed by Indian Strategic Petroleum Reserves Ltd. (ISPRL). 

India currently has 5.33 million tonnes of strategic crude storage across three underground cavern sites, while two additional facilities under construction are expected to add another 6.5 million tonnes of capacity. 

Strengthening Energy Security 

India depends heavily on crude oil and natural gas imports from the Persian Gulf. During the Iran war, the near-total closure of the Strait of Hormuz disrupted energy supplies, forcing importers to seek alternative sources and highlighting the importance of expanding strategic reserves. 

Describing the expansion as being of "national importance," ONGC said it will also develop associated facilities at the Mangalore site in line with directions from the Ministry of Petroleum and Natural Gas. 

Mangalore Facility 

As per news reports, the new caverns may be used alongside the 300,000-barrel-per-day refinery operated by Mangalore Refinery and Petrochemicals Ltd. (MRPL), an ONGC subsidiary. 

The existing strategic storage facility at Mangalore has also attracted international participation, with Abu Dhabi National Oil Company (ADNOC) among the companies leasing storage space. 

Read More: Protean eGov Share Price in Focus as Company Grants 3,39,665 Stock Options Under ESOP 2017! 

ONGC Share Price Performance  

As of 10 July 2026, at 11:15 AM, Oil and Natural Gas Corporation Ltd share price was trading at ₹244.10 per share, reflecting a surge of 0.18% from the previous trading session. 

Conclusion 

The approved expansion adds to India's strategic petroleum storage programme and increases ONGC's role in national energy infrastructure. The project also supports the country's ongoing efforts to strengthen long-term energy security and strategic crude storage. 

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