India plans to move about 19 million barrels into the sites by third week of May to fill its strategic petroleum reserve (SPR).
As the coronavirus ravaged India thus affecting fuel demand from Transportation and Industrial sectors. The fuel demand declined by 18% in March this year, this was lowest in two decades.
By moving the oil to the SPR will help the country’s refineries reduce their excess crude oil. India will be diverting cargoes for loading in April already bought by refiners Indian Oil Corp, Bharat Petroleum, Hindustan Petroleum and Mangalore Refinery and Petrochemicals Ltd.
The refiners had to cut their crude processing after local fuel demand collapsed and they were unable to store the excess oil. According to officials of Indian Strategic Petroleum Reserves Ltd (ISPRL) which is responsible for building and filling of SPR sites.
ISPRL wants to receive the cargoes before India’s monsoon begins in May as the single point mooring system that can unload very large crude carriers (VLCC) at the port of Mangalore, which will feed two SPR sites, is shut during the three-month rainy season.