Indias first strategic crude oil storage facility is attracting demand from state-run Hindustan Petroleum (HPCL).
HPCL is seeking 2.20 million barrels of crude oil storage space. This is a small slice of Indias master plan to build 36.65 million barrels of strategic crude oil storage at three locations in southern India, of which the first facility of 9.75 million barrels will be built at Vizag or Vishakapatnam in 2011.
HPCL, which operates a 150,000 barrels per day (bpd) refinery at Vizag in Andhra Pradesh, is setting up a single- point mooring, a facility where very large crude carriers (VLCCs) can unload.
It currently imports crude through smaller suezmax vessels.
The storage capacity at Vizag was raised by 33% from its initial 7.33 million barrels, and will have two compartments of 7.55 million barrels and 2.20 million barrels, storing both sweet and sour crude. Vizag refinery has a storage capacity of over half million tonnes.