In a bid to reduce transport cost and to ensure uninterrupted access to crude oil, even during global supply chain disruptions, state-run Mangalore Refinery and Petrochemicals has entered into a strategic partnership with Indian Strategic Petroleum Reserves (ISPRL).
This partnership enables MRPL to leverage storage capacity from ISPRL’s caverns, marking a significant milestone for both organisations, the Schedule A Miniratna company said in a statement.
This collaboration underscores a shared vision to drive mutual growth and contribute to national energy security, it said.
Key benefits of the partnership
Cost-effective storage
Through this partnership, Mangalore Refinery can lease ISPRL’s caverns which eliminates the need for constructing and maintaining standalone storage facilities, significantly reducing costs.
Strategic location
The proximity of ISPRL caverns to MRPL’s refinery and the coast minimises transportation costs and transit times.
Enhanced supply security
This partnership ensures uninterrupted access to crude oil, even during global supply chain disruptions.
Operational flexibility
Storing diverse grades of crude oil as per MRPL’s requirements provides operational adaptability.
Reduced capital expenditure
By opting for leased storage, MRPL can allocate capital to other critical areas of its operations, driving overall efficiency and growth.
The agreement was by B. Sudharshan, Executive Director (Refinery), and Atul Gupta, Deputy CEO (ISPRL), in the presence of Mundkur Shyamprasad Kamath, MD (MRPL), and L. R. Jain, CEO & MD (ISPRL).
“The agreement would enable MRPL to enhance its crude oil storage capacity, thereby mitigating risks associated with the volatility of global crude oil markets. This agreement is not merely a contract but a shared commitment to excellence and a promising future,” Kamath said.
With this strategic advantage, Mangalore Refinery is poised to leverage the added storage capacity to procure economically viable and complex crude grades, boosting its bottom line while ensuring energy resilience.
“This partnership sets a benchmark for strategic collaboration in the energy sector and highlights the shared dedication of MRPL and ISPRL to contribute meaningfully to India’s energy ecosystem,” the company added.
