LPG 'returns' from Iran! Years of waiting end, India takes major decision
Following a temporary waiver of US sanctions, India has received its first shipment of Iranian liquefied petroleum gas (LPG) in several years. The shipment, originally intended for China, will be distributed among three Indian companies and paid for in rupees. This move comes at a time when India is grappling with energy supply disruptions and a severe gas crisis.
India has purchased its first shipment of Iranian liquefied petroleum gas (LPG) in several years, according to LSG trade flows and three industry sources, after the US temporarily lifted sanctions on Tehran's oil and refined fuel.
India had stopped purchasing energy from Iran in 2019 under pressure from Western sanctions. According to LSEG data, the tanker was initially destined for China, according to a Reuters report.
Reuters cited sources and LSEG data as saying that the sanctions-hit tanker "Aurora," loaded with Iranian LPG,
is expected to arrive at Mangalore Port on the west coast soon. The disruption to energy shipments through the Strait of Hormuz due to the US-Israeli war with Iran has caused significant damage to the South Asian country.
LPG consignment will be divided among three retailers
This consignment of Iranian LPG will be distributed among three fuel retailers – Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp. Sources said the consignment was purchased from a trader and will be paid for in rupees.
They also said India is considering purchasing more LPG consignments from Iran. However, an official said they had no information about any LPG shipments being purchased from Iran.
"No loaded consignment is coming (from Iran); we have not heard of anything like that," Rajesh Kumar Sinha, special secretary of the Union Shipping Ministry, said at a press conference on Wednesday. The three companies and India's petroleum ministry did not immediately respond to Reuters' requests for comment.
Most of the imported LPG comes from the Middle East
The world's second-largest LPG importer is facing its worst gas crisis in decades. The government has cut gas supplies to industries to ensure there is no shortage of cooking gas for household use.
Last year, India consumed 33.15 million metric tons of LPG (or cooking gas), of which approximately 60 percent was met through imports. Nearly 90 percent of this import came from countries in the Middle East.
India is gradually evacuating its LPG shipments stranded in the Strait of Hormuz. So far, four LPG tankers – Shivalik, Nanda Devi, Pine Gas, and Jag Vasant – have been evacuated. Additionally, India is refilling its empty ships stranded in the Persian Gulf with LPG.
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