Amid slumping demand because of the Covid-19 outbreak, India has diverted a cargo of crude from the UAE to the southwest port of Mangalore to help fill its strategic petroleum reserve (SPR).
The Suezmax tanker Chafa discharged 1 million barrels of Upper Zakum crude at Mangalore on 12 April. India's IOC initially chartered the vessel on 23 March at a Worldscale (WS) rate of 119 from the UAE to Chennai on India's east coast, with 4-6 April loading dates. The discharge port was later changed to Mangalore.
Amid falling prices, the Indian government is looking to fill its SPR with whatever crude is cheaply available. India's 39 million barrel of SPR capacity comprises 9.7 million barrel at Vishakhapatnam, 11 million barrel at Mangalore and 18.3 million barrel at Padur, all of which are underground rock caverns. Around 40 percent of this capacity is available mostly at Padur.
