New measures to beat oil, gas shortages

The State Trading Corporation has taken a series of measures to increase its storage capacity for petroleum products. One of these is the construction of additional capacity storage of 25,000 metric tonnes at Mer Rouge. 

Industry and Commerce Minister Showkutally Soodhun said yesterday that all the measures have been taken to prevent any shortage of petroleum products should Mangalore Refinery Petrochemicals Limited fail to supply on time. 

The State Trading Corporation has ordered an additional shipment, as an immediate measure, in-between the normal turnaround time. “It will repeat such orders whenever the need arises”, said Minister Soodhun. 

Secondly, the STC has made arrangements with oil companies for the the availability of additional storage capacity of 8,800 metric tonnes for Mogas and 4,850 metric tonnes for gas oil. 

Mr Soodhun has also said that negotiations are in course with another private company for an additional storage capacity of 6,500 metric tonnes for fuel oil. 

The STC has already established contacts with potential suppliers in the region to ensure security of supply at short notice. “The advantage of procurement in the region is that the carrying vessels will not have to go through piracy routes and we also benefit from a shorter lead time compared to Mangalore Refinery Petrochemicals Limited.” 

Minister Soodhun further stated that the existing storage capacity of the STC for Mogas, gas oil, fuel oil and kerosene is 10,100 metric tonnes, 40,690 metric tonnes, 30,800 metric tonnes and 25,580 metric tonnes respectively.

By Nilen Kattany