The Indian government’s engineering consultancy firm, Engineers India Ltd. (EIL), is conducting a feasibility study into the development of Salt Cavern-based strategic oil reserves in Rajasthan. The initiative aligns with the government’s goal of expanding the nation’s strategic oil storage capacity.
Salt Cavern-Based Oil Reserves Explained
Salt caverns are subsurface cavities created through solution mining – a process involving the pumping of water into large salt deposit areas to dissolve the salt and form caverns. After removing the brine (water-salt solution), these caverns can serve as crude oil storage facilities.
Understanding Rock-Based Caverns
Rock-based caverns are underground spaces formed by manually excavating and removing rock materials. This creation process involves drilling, blasting, and other techniques for removing rock layers and crafting a suitable storage space. The natural rock walls and ceilings of these caverns act as barriers for containing stored oil.
Preferring Salt Caverns Over Rock Based Caverns
Salt caverns bring several advantages over rock-based counterparts. They are simpler to develop, faster to construct, and less expensive. Moreover, they offer efficient oil injection and extraction due to their well-sealed design. The Massachusetts Institute of Technology’s Environmental Solutions Initiative report highlights these caverns’ suitability for oil storage due to their low oil absorbency and impermeability towards liquid and gaseous hydrocarbons. The United States’ Strategic Petroleum Reserve (SPR), the largest emergency oil reserve worldwide, uses salt cavern-based facilities exclusively.
Potential of Salt-Based Caverns
Salt cavern-based facilities could significantly benefit India’s SPR due to their cost-effectiveness and reduced labor requirements. With abundant salt formations, Rajasthan is seen as an ideal location for developing such facilities. The existing refinery in Barmer and crude oil pipelines further add to the infrastructure supporting oil reserve construction.
Challenges in Developing Salt-Based Caverns
Despite these advantages, constructing salt cavern-based storage facilities presents several challenges. These include the lack of technical expertise among Indian companies and the need for identifying suitable locations that meet geological and technical requirements. Moreover, estimating project costs accurately is difficult without proper technology and knowledge.
About India’s Strategic Petroleum Reserve Program
The Strategic Crude Oil Storage facilities construction in India is managed by the Indian Strategic Petroleum Reserves Limited (ISPRL). The reserves are located at Mangalore, Visakhapatnam, and Padur, with a total storage capacity of 5.33 million metric tonnes. Further plans are underway to set up two more caverns, providing an additional 6.5 million tons of oil reserves.
Implications of India’s SPR Extension
India, as the world’s third-largest crude consumer, relies on imports for over 85% of its requirement. Thus, expanding the SPR capacity can help secure energy availability during global supply shocks and other emergencies. The country aims to increase its SPR capacity with an additional 6.5 million tonnes at two locations.
Suggested Way Forward
A comprehensive geological and technical assessment of potential sites in Rajasthan is crucial. Such evaluations, combined with feasibility studies, can help understand the economic viability and technical feasibility of the project. Public-private partnerships can attract private investments and contribute to the economic growth while reducing government spending.
