India has procured its first shipment of Iranian liquefied petroleum gas (LPG) in several years after the United States temporarily lifted sanctions on Tehran’s oil and refined fuel exports. This marks a significant shift as India had avoided energy imports from Iran since 2019 due to Western sanctions pressure.
Initially, the tanker carrying the Iranian LPG was destined for China, trade flow data. The sanctioned tanker Aurora, transporting the LPG, is expected to arrive soon at the west coast port of Mangalore. This development comes amid ongoing disruptions to energy shipments through the Strait of Hormuz, caused by the conflict involving the US, Israel, and Iran, which has heavily impacted South Asia’s energy supply routes.
The Iranian LPG cargo will be divided among three Indian fuel retailers: Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation. The shipment was purchased via a trader, with payments planned in Indian rupees. India is reportedly considering acquiring additional Iranian LPG cargoes in the near future.
However, a government official expressed uncertainty about the purchase, stating, “(There are) no loaded cargoes from Iran, we have not heard of that.” Rajesh Kumar Sinha, special secretary in the federal shipping ministry, made this remark during a press conference. Neither the three companies nor India’s oil ministry have issued immediate comments on the matter.
India, the world’s second-largest importer of LPG, is currently facing its most severe gas crisis in decades. The government has reduced industrial LPG supplies to prioritize household cooking gas availability. Last year, India consumed 33.15 million metric tons of LPG, with imports fulfilling approximately 60% of this demand. Around 90% of these imports traditionally come from the Middle East.
In response to the supply challenges, India has been actively relocating stranded LPG shipments from the Strait of Hormuz, successfully moving four LPG tankers so far: Shivalik, Nanda Devi, Pine Gas, and Jag Vasant. Additionally, India is loading LPG onto its own empty vessels that have been stranded in the Persian Gulf, aiming to stabilize domestic supply amid regional tensions.
