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‘Incorrect’: Centre on claims about Iran oil ship being diverted to China over payment hurdles
The Union government on Saturday described as “factually incorrect” reports that an Iranian crude oil shipment had been diverted from India to China due to alleged payment issues, reiterating that the country’s crude oil requirements remain secure for the coming months.
The clarification came after reports from earlier this week that a US-sanctioned tanker, Ping Shun, carrying Iranian crude and having crossed the Strait of Hormuz, altered its course toward China after initially signalling Vadinar port in Gujarat as its destination.
The vessel was carrying over 1 lakh tonnes of crude oil, The Hindu quoted ship tracker websites as saying.
This comes as energy supplies to India have been disrupted since the conflict in West Asia broke out. Iran has effectively blocked the Strait of Hormuz, through which about 20% of global petroleum liquids supply passes, for most commercial ships.
The disruptions have affected liquified petroleum gas supplies in India. The country imports about 60% of its LPG demand, most of it from Gulf countries.
Dismissing reports about the tanker on Saturday, the Ministry of Petroleum and Natural Gas on social media said that claims about it being diverted from Vadinar due to alleged payment issues “ignore how oil trade works”.
“Bills of Lading often carry indicative discharge ports destinations and on-sea cargoes can change destinations mid-voyage based on trade optimisation and operational flexibility,” it said.
A bill of lading is a legally binding document issued by a carrier to a shipper, detailing the type, quantity and destination of goods being transported.
The ministry noted that India imports “crude oil from 40+ countries, with companies having full flexibility to source oil from different sources & geographies based on commercial considerations”.
It added that Indian refiners have already secured their crude oil requirements, including supplies from Iran, despite disruptions in West Asia amid the ongoing conflict. “There is no payment hurdle for Iranian crude imports, contrary to the rumours being circulated,” the ministry said.
“It is reiterated that India’s crude oil requirements remain fully secured for the coming months,” it added.
The US and Israel launched an attack on Iran on February 28, claiming that Tehran’s actions posed an existential threat to Israel. Washington acts as a guarantor of Israel’s security. Iran has retaliated by striking Israel and US military bases in the region and targeting major cities in Gulf countries.
Israel has been claiming that Iran is close to obtaining a nuclear weapon, which could alter the regional security balance. Tehran has long maintained that its nuclear programme is for civilian purposes.
Source: Scroll
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