Sources say that India has bought its first cargo of Iran LPG in many years since US sanctions have been eased.
LSG trade flows, along with three industry sources, reported that India had 'purchased its first cargo' of Iranian liquefied petroleum gas after years. The U.S. temporarily lifted sanctions on Tehran’s refined fuels and oil.
India has avoided buying energy from Iran under the pressure of Western sanctions. According to LSEG, the tanker had originally been bound for China.
According to LSEG and sources, a sanctioned?tanker Aurora carrying Iranian LPG will soon reach the west coast Port of Mangalore.
The U.S. and Israeli war against Iran has caused a disruption of energy shipments through the Strait of Hormuz, which has severely affected the South Asian nation.
Three retailers to share LPG Cargo
The Iranian 'LPG' cargo will be split between the three fuel retailers: Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp.
Sources said that the cargo was purchased by a trader and will be paid in rupees. They added that India is looking into buying more LPG cargoes from Iran.
An official claimed that he had no knowledge of Iranian cargoes purchased.
At a Wednesday press conference, Rajesh Kumar Sinha, Special Secretary in the Federal Shipping Ministry, said: "We haven't heard about any loaded cargoes coming from Iran."
Requests for comment from the three companies as well as India's Oil Ministry were not immediately answered.
Most of the imported LPG comes from Middle East
The government has cut off gas supplies to industries in order to protect households from a possible shortage of cooking gas.
India imported about 60% of the LPG (cooking gas) it consumed last year. Around 90% of these imports were from the Middle East.
India has moved four LPG tanks from the Strait of Hormuz. These are Shivalik, Nanda Devi Pine Gas and Jag Vasant.
India also loads LPG on its empty ships stranded at the Persian Gulf. (Reporting and editing by Bernadette B. Baum; Nidhi V. Verma)
(source: Reuters)
