Strategic Reserves To Be Increased – But Even More Needed

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Strategic Reserves To Be Increased – But Even More Needed

Update

July 13, 2026 01:00 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MIndia Energy | Asia Pacific Mayank Maheshwari

Equity Analyst

Strategic Reserves To Be Mayank.Maheshwari@morganstanley.comMorgan Stanley India Company Private Limited+ +65 6834-6719

Pranitha Shetty

Research AssociateIncreased – But Even More Pranitha.Shetty@morganstanley.com +91 22 6118-3022

Hinal Choudhary

Research AssociateNeeded

Hinal.Choudhary@morganstanley.com +91 22 6118-2044

ONGC's announcement to develop a 1.75mmt (~13mn barrels) Strategic Petroleum Morgan Stanley Asia (Singapore) Pte.+

Vivek RajamaniReserve (SPR) marks a step in the right direction. However, even after the addition,

India's oil reserves would cover fewer than 11 days of consumption, remaining well Vivek.Rajamani@morganstanley.com +65 6834-6740

below the levels maintained by most major oil-consuming countries. We expect a Ryan M Heng

significant increase in investment in LNG, LPG, crude oil, and ethane storage Equity Analyst

Ryan.Heng@morganstanley.com +65 6834-6465

infrastructure across India (see Energy Security and AI: Energy Meets Compute:

Supercycle Recharges).

India currently has approximately 39mn barrels of strategic crude oil storage

capacity ( Exhibit 1 ). According to recent news flow, the government aims to expand

strategic storage capacity to around 120mn barrels over time, underpinning a multi- India Oil & Gas

year investment opportunity in strategic petroleum storage infrastructure. Asia Pacific

Industry View In-Line

Exhibit 1: India's strategic crude reserves remain well below those of major oil-

consuming economies.

Country Startegic Crude Reserves No of days

(mn bbl) (based on oil consumption)

China 1,397 80

USA 413 21

Japan 263 79

Saudi Arabia 82 21