India has purchased its first consignment of Iranian liquefied petroleum gas (LPG) in many years, after the US briefly lifted sanctions imposed on Tehran’s oil and refined fuel, according to LSG trade flows and three industry sources. Under pressure from Western sanctions, India stopped buying energy from Iran in 2019. According to Reuters report, according to LSEG data, this tanker was initially going to China. Reuters report quoted sources and LSEG data also showed that the sanctions-hit tanker ‘Aurora’, loaded with Iranian LPG, is expected to reach Mangalore port on the west coast soon. This South Asian country has suffered huge losses due to the interruption in the shipment of energy through the ‘Strait of Hormuz’ due to America and Israel’s war with Iran.
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 that this consignment has been purchased from a trader and it will be paid in rupees. He also told that India is considering purchasing more consignments of LPG from Iran. Nevertheless, an official said that he had no information about the purchase of LPG consignment from Iran. Rajesh Kumar Sinha, Special Secretary, Union Shipping Ministry, said in a press conference on Wednesday that no loaded consignment is coming (from Iran); We have not heard any such thing.” 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 the supply of gas to industries, so that there is no shortage of cooking gas used in common homes. Last year, India consumed 33.15 million metric tons of LPG (ie cooking gas), out of which about 60 percent of the demand was met through imports. About 90 percent of this import came from Middle East countries. India is gradually evacuating its LPG consignments stuck in the ‘Strait of Hormuz’. So far, four LPG tankers – Shivalik, Nanda Devi, Pine Gas and Jag Vasant – have been evacuated from there. Apart from this, India is also filling LPG in its empty ships stranded in the Persian Gulf.