Petroleum Ministry Denies Diversion of Iranian Crude Cargo to China Over Payment Issues

The CSR Journal Magazine

The Petroleum Ministry in India has dismissed claims alleging that an Iranian crude oil shipment destined for India was redirected to China due to payment difficulties. On Saturday, the ministry took to social media to clarify that there have been no issues regarding payment in securing the country’s crude oil imports. The ministry emphasized that the narrative of diversion is factually incorrect and does not reflect the operational realities of the oil trade.

Clarification on Oil Imports and Operational Flexibility

In its statement, the Petroleum Ministry noted that Bills of Lading typically feature indicative ports of discharge and that there can be changes to destinations for cargo currently at sea, often driven by trade optimization and the need for operational flexibility. It affirmed that India imports crude oil from over 40 countries, allowing companies the discretion to procure oil from various sources based on commercial factors.

LPG Supply Situation Addressed

The ministry also addressed rumors concerning Liquefied Petroleum Gas (LPG) supplies, stating that the LPG vessel named Sea Bird, containing approximately 44,000 metric tonnes of Iranian LPG, arrived in Mangalore on April 2 and is in the process of unloading its cargo. The ministry reiterated that there are no payment issues related to Iranian crude, dismissing any circulating rumors regarding the LPG supply as unfounded.

Tranquility in Crude Oil Supply

In light of ongoing disruptions in the Middle Eastern oil supply, the ministry reassured that India’s crude oil requirements are fully met for the upcoming months. Additionally, it highlighted that a large Indian gas carrier, Green Sanvi, successfully navigated the Strait of Hormuz, transporting around 46,650 metric tonnes of LPG recently. The situation is being closely monitored amid a maritime blockade resultant from escalating tensions in West Asia.

Context of the Current Regional Conflict

The ongoing crisis in West Asia has its roots in actions taken by the US and Israel against Iran beginning on February 28, which incited retaliatory actions from Iran. This series of events has contributed to disruptions in global fuel supplies, prompting the Indian government to engage with Iranian authorities regarding the passage of its vessels through contentious maritime routes.

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