India plans new strategic oil reserve to enhance energy security
India, the world's third-biggest oil importer and consumer, imports more than 80% of its oil needs and is constantly diversifying its crude sources to mitigate the impact of geopolitical crises on its oil procurement.
State-run engineering consultancy Engineers India Ltd (ENGI.NS), opens new tab is doing feasibility studies to build the new reserves, Indian Strategic Petroleum Reserve Ltd's CEO L R Jain told Reuters. "In case of exigencies, we will be better prepared," he said.
India currently has strategic petroleum reserves at three locations - Mangalore, Padur and Vizag - in southern India to store up to 5.33 million tons of crude that could be tapped in the case of supply disruptions.
It plans to create a new 5.2 million-5.3 million ton reserve at salt caverns at Bikaner in the desert state of Rajasthan, and a 1.75-million ton facility at Mangalore in southern Karnataka state, he said.
It will also create a reserve in Bina, central Madhya Pradesh state, with capacity yet to be decided, he said.
After feasibility studies, the projects will require approval from the federal cabinet.
They will come in addition to a new 2.5 million-ton strategic petroleum reserve at Padur and a 4 million-ton facility at Chandikhol in eastern Odisha state that have already been approved.
India has over the years overhauled its policy on strategic petroleum reserves to allow private participation and commercialisation, mirroring the model adopted by countries such as Japan and South Korea which allow private lessees, mostly oil majors, to trade the crude.
"We are looking for 90 days of reserves," Jain said. "And Indian fuel demand is also rising, so we need additional storage."
Expanding oil storage capacity would also help India join the International Energy Agency, which requires its members to hold a minimum of 90 days of oil consumption.
India's storage capacity, including that held by companies and in transit, is currently sufficient to meet its fuel demand for 75 days.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Guardian
3 hours ago
- The Guardian
India successfully tests nuclear-capable missile able to reach deep into China
India has said that it has successfully test-fired an intermediate-range ballistic missile which, when operational, should be capable of carrying a nuclear warhead to any part of China. The Agni-5 missile was successfully launched in India's eastern Odisha state on Wednesday, and authorities said it 'validated all operational and technical parameters'. India and China, the world's two most populous nations, are intense rivals competing for influence across south Asia and relations plummeted in 2020 after a deadly border clash. India is also part of the Quad security alliance with the US, Australia and Japan, which is seen as a counter to China. India's bitter rival, Pakistan, has nuclear weapons as well and the two countries came to close to war in May after militants killed 26 people in Indian-administered Kashmir, an attack New Delhi blamed on Islamabad. Pakistan denied any involvement. Caught in global trade and geopolitical turbulence triggered by Donald Trump's tariff war, Delhi and Beijing have moved to mend ties. Last October, the Indian prime minister, Narendra Modi, met the Chinese leader, Xi Jinping, for the first time in five years at a summit in Russia. Modi is expected to make his first visit to China since 2018 later this month to attend the summit of the Shanghai Cooperation Organisation – a regional security bloc. Ties between New Delhi and Washington, meanwhile, have been strained by Trump's ultimatum that India end its purchases of Russian oil, a key source of revenue for Moscow as it wages its military offensive in Ukraine. The US says it will double new import tariffs on India from 25% to 50% by 27 August if New Delhi does not switch crude suppliers. The Agni-5 is one of a number of indigenously produced short- and medium-range Indian ballistic missiles aimed at boosting its defence posture against Pakistan, as well as China.
Finextra
4 hours ago
- Finextra
Citi gives commercial banking platform an AI makeover
Citi's single-entry point digital client platform, CitiDirect Commercial Banking, continues to be rolled out globally, and now has additional enhanced functionality, leveraging the power of Artificial Intelligence (AI) to achieve client experience efficiencies as well as streamlined digital enhancements. 1 Launched in 2023, the platform now supports more than 57% of Citi's total commercial banking client base, globally. It is live in the U.S., Hong Kong, India, Singapore, the U.K., Canada, Australia and Brazil, with approximately 2.3 million client sessions*, referring to a period of active user engagement with the platform, typically from log in to log out. CitiDirect® Commercial Banking brings together Citi's global products and services into a single digital platform, providing clients with a 360° consolidated view of their Citi banking relationship across Cash, Loans, Trade, FX, Servicing and Onboarding/ 'Know Your Client' (KYC). Since 2023, the platform has continued to evolve to meet the needs of clients and to integrate additional enhancements. These are achieved through the deployment of AI as well as the leveraging of strategic external FinTech partnerships. Enhancements were actioned with the aim of achieving a seamless digital banking experience for mid-sized corporates and integrating client feedback on the platform. Over the last two years, we've seen the platform evolve in new ways to support our clients as they focus on growing their businesses globally. The enhancements support an intuitive and seamless digital experience that delivers real-time insights, greater control and a suite of innovative features. This supports our global strategic goal of digitalizing the banking experience for mid-sized corporates who need to find banking solutions and insights quickly and efficiently.' Tasnim Ghiawadwala Global Head of Citi Commercial Bank Important new enhancements to CitiDirect® Commercial Banking include: AI-Powered efficiency and security: AI-driven automation enhancing both efficiency and security by streamlining data extraction, form filling, client query routing and fraud detection. Proactive guidance: 'Next-best-action' suggestions to guide clients through common tasks, maximizing efficiency and simplifying complex processes. Simplified KYC renewals: 'One field, one-time' drives a new, fully integrated digital KYC process with automated notifications and pre-filed information to simplify renewals, reducing client effort and risk. Intuitive user experience: Data-driven enhancements based on user behavior analysis, continuously optimizing the platform's ease of use. Streamlined onboarding: A fully digitized onboarding process with real-time status updates has significantly reduced onboarding turnaround times. Seamless Enterprise Resource Planning (ERP) integration: Citi Integrator has reduced ERP implementation time from seven weeks to under a day, enabling clients to integrate their systems rapidly and more efficiently. Enhanced client service: A new 'Digital Servicing Hub' centralizes client queries, updates and document submission, improving communication and response times. Client feedback on the platform indicates an improved client experience as well as higher rates of satisfaction for ease of use and effectiveness, based on over 10,000 in-platform survey responses.
Reuters
8 hours ago
- Reuters
Crude inventories see sharp decline as exports rise, EIA says
Aug 20 (Reuters) - Crude inventories fell sharply last week amid lower imports and a jump in exports, the U.S. Energy Information Administration said on Wednesday. Crude oil stockpiles fell by 6 million barrels to 420.7 million barrels last week, the EIA said, compared with analysts' expectations in a Reuters poll for a 1.8 million-barrel draw. Inventories at the Cushing, Oklahoma, delivery hub (USOICC=ECI), opens new tab rose by 419,000 barrels in the week ended August 15, the EIA said. Oil futures continued to trade in positive territory following the report. Global Brent benchmark futures were at $66.37 a barrel, up 58 cents at 10:52 a.m. EDT (1452 GMT), while U.S. West Texas Intermediate (WTI) futures were trading at $62.83 a barrel, up 48 cents. Net U.S. crude imports (USOICI=ECI), opens new tab fell by 1.22 million barrels per day (bpd) last week, EIA said, while exports rose by 795,000 bpd to 4.37 million bpd. "The exports are strong, so that's going to translate into a strong demand for crude oil," said John Kilduff, a partner with Again Capital. "That and the strong refinery demand really makes this a bullish report," he added. Refinery crude runs (USOICR=ECI), opens new tab rose by 28,000 bpd in the week, while utilization rates (USOIRU=ECI), opens new tab rose by 0.2 percentage points to 96.6%, the EIA said. Total product-supplied of refined fuels, a proxy for demand, climbed to 21.5 million bpd, up 149,000 bpd week-over-week. "A very positive report, supported by large U.S. crude draw, as results of high crude exports and lower imports. Also implied oil demand remained strong, resulting in another large inventory draw for gasoline," said Giovanni Staunovo, an analyst at UBS. U.S. gasoline stocks (USOILG=ECI), opens new tab fell by 2.7 million barrels in the week to 223.6 million barrels, the EIA said, compared with analysts' expectations in a Reuters poll for a 915,000 barrel draw. Distillate stockpiles (USOILD=ECI), opens new tab, which include diesel and heating oil, rose by 2.3 million barrels in the week to 116 million barrels, versus expectations for a 928,000 barrel rise, the EIA data showed. The four-week average for jet fuel consumption rose last week to its highest level since 2019, the EIA said.
