Mangalore Refinery and Petrochemicals Ltd (MRPL) has partnered with Indian Strategic Petroleum Reserves Ltd (ISPRL) to allow MRPL to leverage storage capacity in ISPRL’s caverns.

Mundkur Shyamprasad Kamath, Managing Director, MRPL, said the agreement would enable MRPL to enhance its crude oil storage capacity, thereby mitigating risks associated with the volatility of global crude oil markets.

He said, leasing ISPRL’s caverns eliminates the need for constructing and maintaining stand-alone storage facilities, significantly reducing costs. By opting for leased storage, MRPL can allocate capital to other critical areas of its operations, driving overall efficiency and growth.

Storing diverse grades of crude oil as per MRPL’s requirements provides operational adaptability. MRPL is poised to leverage the added storage capacity to procure economically viable and complex crude grades, boosting its bottom line while ensuring energy resilience.

He said the proximity of ISPRL caverns to MRPL’s refinery and the coast minimises transportation costs and transit times. MRPL-ISPRL partnership ensures uninterrupted access to crude oil, even during global supply chain disruptions.

“This agreement is not merely a contract but a shared commitment to excellence and a promising future,” Kamath said.

The agreement was formally signed at the MRPL office in Mangaluru by B Sudharshan, Executive Director (Refinery) of MRPL, and Atul Gupta, Deputy CEO (ISPRL), in the presence of Kamath, and LR Jain, CEO and MD (ISPRL).