Centre Dismisses Iran Crude Diversion to China Rumours, Confirms Secure Oil Supply

India's Energy Supplies Remain Secure Amid Reports of Diverted Iranian Crude Shipment

The Ministry of Petroleum and Natural Gas has dismissed recent reports that an Iranian crude oil shipment was diverted from India to China due to payment issues. In a statement posted on X, the ministry clarified that such claims are "factually incorrect" and that the country's energy supplies remain secure.

The ministry stated that Indian refiners have already secured their crude oil requirements, including supplies from Iran, despite disruptions in the Middle East amid the ongoing Iran war. This reassurance comes as reports had surfaced earlier this week that the US-sanctioned tanker Ping Shun, carrying Iranian crude, had altered its course toward China after earlier signalling India's Vadinar port as its destination.

Ship-tracking data from Kpler indicated that the vessel, which had been expected to deliver around 600,000 barrels of crude, changed its destination mid-voyage. However, the ministry pointed out that such changes are common in the global oil trade, with bills of lading often carrying indicative discharge ports and on-sea cargoes able to change destinations mid-voyage based on trade optimisation and operational flexibility.

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The ministry also addressed concerns related to liquefied petroleum gas (LPG) supplies, calling some claims "incorrect." It noted that the LPG vessel Sea Bird, carrying approximately 44,000 tonnes of Iranian LPG, berthed at Mangalore on April 2 and is currently discharging cargo.

India has not officially imported Iranian crude since 2019 due to U.S. sanctions, although recent reports suggested a potential resumption following a temporary waiver for cargoes already at sea. The government reiterated its position, stating that "India's crude oil requirements remain fully secured for the coming months," seeking to calm concerns over supply disruptions as geopolitical tensions continue to affect global energy markets.

India has not imported crude oil from Iran since May 2019, when purchases were halted following U.S. sanctions. Any potential resumption has remained complicated due to restrictions on payments, shipping logistics, and insurance coverage. A temporary waiver announced by U.S. President Donald Trump has allowed Iranian oil cargoes already at sea to avoid penalties for a limited period, raising expectations of a possible revival in shipments.

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Meanwhile, a seventh India-flagged LPG tanker, Green Sanvi, crossed the Strait of Hormuz on Friday, joining six others that have already reached India. The Green Sanvi is believed to be carrying about 46,000 tonnes of LPG.