The Union Ministry of Petroleum and Natural Gas on Saturday brushed off reports that an Iranian ship bound for India had diverted to China due to alleged payment issues.
In a statement to X, the petroleum ministry called the claim “factually incorrect” and added that companies have full flexibility to import oil from various sources.
“Reports and social media posts that Iranian crude cargo has been diverted from Vadinar, India to China due to ‘payment issues’ are factually incorrect. India imports oil from more than 40 countries, with companies having full flexibility to source oil from different sources and geographies based on commercial considerations,” the petroleum ministry said on Saturday.
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No Payment Hurdle: Govt
Further denying the claims made in media reports, the Center said that there were no payment hurdles for importing Iranian oil into India.
“Amid oil supply disruptions in the Middle East, Indian refiners have secured their oil requirements, including from Iran; and contrary to rumours, there is no payment hurdle for importing Iranian oil.
According to a Bloomberg report early Saturday morning, the US-sanctioned vessel carrying Iranian crude was originally bound for India, where it would be the first such shipment in nearly seven years.
The report said a 2002 Aframax named Ping Shun signaled Dongying in China, according to ship tracking company Kpler.
Earlier this week, the ship indicated it would arrive at Vadinar on India’s west coast, but has since turned sharply south, the report claimed, adding that such target signals were not final.
Later, PTI, citing Kpler analyst Sumit Ritolia, said that Ping Shun’s change of destination appeared to be related to the payments. Amid tight oil supplies, sellers are tightening terms, moving away from the earlier 30-60 day credit window for early or near-term settlement, the report said.
However, the Ministry of Petroleum stressed that claims of “diversion of vessels ignore how the oil business works”.
“Bills of lading often contain indicative designations of ports of discharge, and cargo at sea may change destination during a voyage based on trade optimization and operational flexibility,” it said.
The Ping Shun is estimated to be carrying about 600,000 barrels of oil, which was loaded from Kharg Island around March 4. Her declared ETA for Vadinar was April 4, according to Kpler.
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India’s raw demand secured
The government further reiterated that India’s crude requirement was secure in the coming months despite supply constraints due to the blockade of the Strait of Hormuz amid tensions in the Middle East.
“We reiterate that India’s oil requirements will remain fully secured in the coming months,” the petroleum ministry said.
“Also on LPG, some of the claims are incorrect as the Sea Bird LPG vessel carrying around 44 TMT of Iranian LPG docked at Mangalore, India on April 2 and is currently being discharged,” he added.
Earlier today, the Indian-flagged large gas carrier Green Sanvi safely passed through the Strait of Hormuz on Friday evening carrying around 46,650 metric tonnes of Liquefied Petroleum Gas (LPG) cargo, official sources said.
The Center is in talks with Iranian authorities to allow Indian vessels to pass through the Strait of Hormuz amid a naval blockade due to the ongoing conflict in the Middle East.
