India Buys First Iranian LPG Cargo in Years as US Eases Sanctions Amid Hormuz Blockades

India has purchased its first cargo of Iranian liquefied petroleum gas in years after the United States removed sanctions on Tehran’s oil and refined fuels for a period, according to LSEG trade flow data and sources cited by Reuters.

The tanker Aurora is carrying the Iranian LPG cargo and will reach the port of Mangalore. Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation will share the cargo. The buyer will make payment in rupees, according to sources. A trader handled the purchase, and India is exploring more Iranian LPG cargoes.

Data from London Stock Exchange Group shows that the tanker was earlier bound for China before it changed destination.

A government official said he does not have information about any Iranian cargo purchase. Rajesh Kumar Sinha from the federal shipping ministry said he has no information about loaded cargoes from Iran. India’s oil ministry and the three fuel retailers did not respond to requests for comment.

India stopped purchasing Iranian energy after the United States reimposed sanctions on Tehran in 2019.

The Strait of Hormuz blockade has cut about 90 percent of India’s LPG imports and exposed dependence on Gulf energy supply. India consumed 33.15 million metric tons of LPG last year. Imports met about 60 percent of demand, and about 90 percent of those imports passed through the Strait of Hormuz.

The government has cut LPG supplies to commercial and industrial users to protect household cooking gas stocks. Four tankers — Shivalik, Nanda Devi, Pine Gas, and Jag Vasant — have passed through the strait and are moving toward Indian ports.

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Video: US and Russian Ships Deliver Fuel to India as Hormuz Crisis Disrupts Supply

India secured energy supplies from two directions this week as the war in the Middle East disrupted oil and gas routes through the Strait of Hormuz.

A US cargo ship, Pyxis Pioneer, carrying liquefied petroleum gas from Texas docked at Mangalore Port on Sunday. Shortly before it arrived, another vessel, Aqua Titan, carrying Russian crude oil also reached Mangalore. Workers will use a single-point mooring system to transfer the Russian crude into a pipeline that runs to the Mangalore Refinery and Petrochemicals Limited facility.

The Russian crude arrived after the United States issued a temporary general license, allowing the sale of Russian oil that sat stranded at sea as of March 12. Washington took the step to help stabilize fuel prices as the Middle East conflict drives oil above $105 a barrel.

India has also increased its purchases of Russian oil following the US decision to allow a temporary boost in imports. The move helps India manage supply gaps caused by disruptions in the Persian Gulf.

On India’s west coast, two more vessels completed the week’s deliveries. The Indian-flagged tanker Nanda Devi docked at Vadinar Port in Gujarat, and Shivalik arrived at Mundra Port earlier in the week. Both ships passed through the Strait of Hormuz, where the conflict has severely disrupted maritime traffic.

India’s Director General of Shipping continues to monitor 22 Indian-flagged vessels carrying 611 Indian seafarers who remain in the western Persian Gulf region, coordinating with ship owners and Indian diplomatic missions to track their safety.

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