Two LPG Tankers Provide Relief to India Amid Supply Crisis

Two tankers carrying liquefied petroleum gas (LPG) are en route to India after successfully navigating the Strait of Hormuz. This development offers some respite to the country, which is currently grappling with significant shortages of LPG due to ongoing disruptions caused by the conflict in the Persian Gulf. The state-owned vessels were permitted safe passage through the strait, as confirmed by Indian Foreign Ministry spokesman Randhir Jaiswal on March 14, 2024.

The situation remains precarious, with 22 Indian-flagged vessels still stranded in the Persian Gulf. This includes six LPG carriers, one LNG (liquefied natural gas) vessel, and four crude oil tankers, as noted by Rajesh Kumar Sinha, the special secretary at the shipping ministry. India is the second-largest importer of LPG globally, sourcing approximately 90% of its supply from the Middle East. The shortages are impacting both cooking and industrial processes, as well as the petrochemical sector, which relies on LPG for plastic production.

Negotiations between New Delhi and Tehran were critical in facilitating the passage of these tankers through the strait, which has faced closures for nearly two weeks. Sources familiar with the negotiations, who requested anonymity due to the sensitive nature of the discussions, indicated that an agreement had been reached. An Iranian official, who also declined to be named, confirmed that he could not verify the details of any agreement.

The tanker Shivalik is expected to arrive at Mundra Port on March 16, while the Nanda Devi is anticipated to reach the port a day later. Both vessels are owned by Shipping Corporation of India Ltd. and chartered by state-run Indian Oil Corporation. They loaded their cargo at Ras Laffan in Qatar and have communicated their status as Indian government vessels via their Automatic Identification Systems (AIS).

With the arrival of these tankers, there is hope that the acute shortages affecting households and industries in India may begin to ease. The ongoing situation remains closely monitored, as the country continues to seek solutions to ensure a stable supply of essential cooking fuel.