
Stranded LPG Stocks Reach Approximately 3 Lakh Metric Tonnes at the Strait of Hormuz, Government Reports
Strait of Hormuz Crisis: 3 Lakh Metric Tonnes of LPG Stranded
As of March 17, 3 lakh metric tonnes of Liquified Petroleum Gas (LPG) is stranded at the Strait of Hormuz, according to Rajesh Kumar Sinha, Special Secretary at the Ministry of Ports, Shipping, and Waterways.
Indian-Flagged Vessels Stranded
A total of 22 Indian-flagged vessels are stranded at the Strait of Hormuz, comprising 6 LPG carriers, 1 LNG tanker, 4 crude oil carriers, 1 chemical and products carrier, 3 container ships, and 2 bulk carriers. One LPG vessel, a Very Large Gas Carrier, carries approximately 45,000 metric tonnes of LPG.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Recent Developments
Two Indian-flagged LPG tankers, Shivalik and Nanda Devi, safely passed through the Strait of Hormuz on March 14, carrying approximately 92,700 metric tons of LPG. Another crude oil tanker, Jag Laadki, has safely sailed from UAE's Fujairah, carrying 81,000 MT of Murban crude oil.
Diversification Efforts
India has begun sourcing cooking gas from the United States as part of efforts to diversify supplies amid the ongoing West Asia crisis. The government has signed a long-term deal with state-run refiners for 2.2 million tonnes per annum of LPG for 2026.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
No Iran Vessel Exchange
Contrary to reports, Randhir Jaiswal, Additional Secretary in the Ministry of External Affairs, clarified that there has been no discussion between Indian and Iranian authorities regarding the exchange of three Iranian vessels for safe passage.
Continued Engagement with Iran
The Indian government continues to engage with Iran to ensure safe transit of remaining stranded vessels in the Persian Gulf. India will seek vessel-by-vessel permission rather than a blanket clearance from Iran for safe passage of its ships from the Strait of Hormuz.
Investor Takeaway
Investors should be cautious of potential disruptions in global energy markets due to stranded LPG stocks.
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