India is set to receive its first consignment of crude oil from Iran—after almost seven years—an indication that the world’s third largest importer is making use of the 30-day window offered by the United States for buying Iranian oil “on water”.
Global data and analytics provider Kpler’s Marine Traffic told businessline that an Aframax, Ping Shun (IMO 9231901) is loaded with around 600,000 barrels of Iranian crude oil from Kharg Island in early March and has emerged as the first vessel observed signalling a destination of Vadinar (Gujarat) in India.
This is the first crude oil cargo “since May 2019”, following sanctions being re-imposed on Iranian oil by the first Trump administration, it added.
It is not immediately clear which refiner has contacted the Iranian crude oil cargo.
Vadinar is home to the 405,000 barrels per day (b/d) refinery, which is owned and operated by Rosneft-backed Nayara Energy. However, sources said that the cargo is not for Nayara as its refinery is going into a 35-day maintenance from April1-2.
Amid the Middle East Gulf (MEG) conflict and subsequent oil price volatilities, the US administration temporarily lifted sanctions for over 30 days against Iranian oil on water loaded before March 20th, explained Sumit Ritolia, Kpler’s Lead Research Analyst for Refining & Modeling.
“The Indo-Iranian oil trade has flickered back to life. Following the US administration’s decision to grant a 30-day window for Iranian oil ‘on the water’ due to regional conflict. The vessel Ping Shun is now en route to Vadinar with 600,000 barrels of crude. This is the first such delivery since May 2019 and comes at a critical time for Indian refiners facing tightening inventories,” he added.
The tanker is left from Kharg Island around March 4th, with a declared ETA to Vadinar on April 4th, Marine Traffic said.