A delegation from the Abu Dhabi National Oil Company (ADNOC) attended a special event at the Karnataka oil storage facility, in the Indian city of Mangalore, to celebrate the unloading of the first cargo of ADNOC crude oil sent to the Indian Strategic Petroleum Reserves Ltd (ISPRL).
The cargo, which was loaded in Abu Dhabi at an event witnessed by H.E. Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and H.E. Dharmendra Pradhan, Indian Minister for Petroleum and Natural Gas, arrived in Mangalore following a short, 6-day voyage.
Abdulla Salem Al Dhaheri, ADNOC’s Director of Marketing, Sales and Trading, said: “Our teams, from ADNOC and ISPRL, have worked tirelessly to ensure the successful implementation of this important strategic project. ADNOC is already a trusted and reliable supplier of crude oil and refined products to many customers and partners in India, and we are proud to deepen this longstanding relationship through another important and strategic collaboration.”
The agreement between ADNOC and ISPRL, which was initiated in January 2017 during a visit to India by a high-ranking UAE delegation, led by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, covers the storage of 5.86 million barrels of ADNOC crude oil in underground facilities, at the Karnataka facility. Today’s first shipment, of approximately 2 million barrels of crude oil, will be followed by further shipments after India’s annual monsoon season.
HPS Ahuja, CEO and Managing Director of ISPRL, said: “Todays unloading of ADNOC crude oil marks another important milestone for ISPRL, as we deliver on our mandate of establishing strategic crude oil storage facilities that enhance India’s energy security and serve as a cushion during any external supply disruptions. Our agreement with ADNOC builds on the rich history between our nations and opens new opportunities for further partnership and engagement between the UAE and India, one of the world’s fastest-growing economies.”
ISPRL has built and will operate three crude oil storage facilities, constructed in underground rock caverns located on the East and West coasts of India. Crude oil from these caverns can be supplied to Indian Refineries, either through pipelines, or through a combination of pipelines and ships. While part of the stored oil can be used for commercial purposes by ADNOC, the major part will be reserved for strategic purposes.
Indian energy demand is forecast, by the International Energy Agency (IEA), to grow by more than any other country in the period to 2040, propelled by an economy that will grow to more than five-times its current size and by population growth that will make it the world’s most populous country. Indian energy consumption is expected to more than double by 2040, accounting for 25 percent of the rise in global energy, and the largest absolute growth in oil consumption.
India is 82-percent dependent on imports to meet its crude oil needs, eight percent of which is supplied by the UAE. In addition to helping to ensure energy security, the oil storage facilities enable ADNOC to efficiently and competitively meet market demand across Asia.