India is looking to the United States of America to conserve its strategic petroleum reserves (SPR).
Over the last few days the two countries have in fact signed a preliminary cooperation agreement that allows New Delhi to store crude oil in American deposits.
According to the Indian Minister of Petroleum and Natural Gas, Dharmendra Pradhan, the crude oil that India intends to deposit in the US emergency stockpile would be mostly produced by the US and bought by the Asian state.
No details have yet been leaked about the agreed total storage quantity and costs. It will all depend on how the negotiation evolves. What is certain, however, is that, with this agreement, India would solve one of its main problems: the lack of land space for its national emergency oil reserve.
The country has an onshore storage capacity of approximately 39 million barrels, while the US reserve has a maximum storage capacity of 713.5 million barrels stored in salt caves located all along the United States’ Gulf Coast.
India is the world’s fourth largest importer of US crude. Between 2017 and 2018, US crude oil exports to the country increased tenfold, reaching 2.5 million barrels per day.
Translation by Giles Foster