Shares of Mangalore Refinery & Petrochemicals Ltd. extended gains for a second consecutive session on Monday, 13 July, as investors continued to cheer parent company Oil and Natural Gas Corp.'s plan to develop a 1.75 million metric tonne (MT) national strategic petroleum reserve in Mangaluru. According to the latest reports, the board decision was taken at a meeting held on July 09, 2026, with the proceedings formally recorded and communicated to stock exchanges by Company Secretary & Compliance Officer Shashi Bhushan Singh. The project has been designated as one of national importance and follows directives issued by the Ministry of Petroleum and Natural Gas (MoP&NG). As per Business Standard, the development comes at a time when the government is making efforts to expand the country's strategic oil reserves, with the government wanting reserves of crude, and liquefied natural and petroleum gas to be large enough to meet as much as a month of domestic demand.
In the latest regulatory filing, ONGC stated it is building the reserve in "national interest" and would seek the federal government's approval for commercial use of the storage facility. As reported by Essential Business Intelligence, the Centre has already permitted commercial use of parts of strategic petroleum reserves at Mangalore, Vizag and Padur, which together can store up to 5.33 MT of crude oil. Mangalore Refinery has leased half of the 1.5 MT Mangalore Strategic Petroleum Reserve, while the remaining capacity has been leased to Abu Dhabi National Oil Co. The board has also directed management to pursue broadening commercial utilisation opportunities for the reserves, seeking associated regulatory support from the Government of India to enhance the project's viability and scope. When complete, the project will increase holdings managed by Indian Strategic Petroleum Reserves Ltd., the state-owned entity that oversees the stockpiles.
MRPL shares opened higher and extended gains to an intraday high of ₹169.20 on Monday, building on Friday's sharp rally of 6% after the announcement. The stock was trading 4% higher from its previous close of ₹162.49, with around 27 million shares changing hands. At 1:45 PM, the stock was trading 8.4% higher at ₹162.30, significantly outperforming the Nifty 50 which was up 1% at 24,200. According to Business Standard, Harish Jujarey, head - technical equity research at Prithvi Finmart, noted that MRPL has witnessed a volatile journey over the past year, after touching a high of ₹212 in March. The stock underwent a healthy correction and found support near the rising trendline around the ₹145 zone. In today's session, the stock bounced sharply and moved close to its 200-day moving average (DMA), indicating improving sentiment. A sustained move above the 200-DMA at ₹165 could trigger a short-term rally towards ₹190, followed by ₹200.
The approval comes as India expands its strategic crude oil storage capacity to strengthen emergency fuel reserves. According to Essential Business Intelligence, India is also planning to build an additional 4 MT strategic petroleum reserve at Chandikhol in Odisha and another 2.5 MT facility at Padur. At present, Indian Strategic has underground caverns at three sites on the east and west coasts that total 5.33 million tons, with two more sites being built to add a further 6.5 million tons of space. Earlier this year, Abu Dhabi National Oil Co. announced plans to expand its crude oil storage capacity in India to as much as 30 million barrels and explore potential crude storage at Fujairah as part of India's strategic storage plans. The Mangalore facility will serve as a critical node in the national storage network aimed at ensuring energy security and mitigating supply disruptions.
Market participants expect the additional storage capacity to strengthen the country's emergency reserves and reduce its dependence on fuel imports. According to Essential Business Intelligence, investors are also assessing the announcement against the backdrop of disruptions linked to the ongoing West Asia crisis and concerns over the Strait of Hormuz. Mangalore Refinery, a subsidiary of ONGC, operates a 300,000-barrel-a-day refinery in Karnataka state, and ONGC may use the new caverns in conjunction with MRPL for storage. The announcement has strengthened investor confidence as the facility is expected to play a crucial role in bolstering India's emergency crude oil storage capacity, marking a significant step in bolstering the country's energy security infrastructure through strategic storage capabilities.
