New Delhi: Government is considering building a strategic storage of crude oil to provide for a 45-day cover, Lok Sabha was informed on July 24.

Stating that this storage would be built gradually, Petroleum Minister Ram Naik said during Question Hour that in the first phase, 15 days' storage has been proposed.

He said action was being taken to finalise the mode of financing, building and operating the storage.

A delegation led by him had visited the strategic petroleum reserve of the United States at Bryan Mound site in Texas in June and a technical team would visit the place shortly, Naik said.

Engineers India Limited had prepared detailed feasibility reports for constructing underground strategic storage of crude oil to provide for 15 days' cover, he said, adding the issue of strategic oil storage was being further studied by Indian Oil Corporation (IOC) and Oil and Natural Gas Corporation (ONGC).

PTI