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India's Struggle to Alleviate Energy Crisis Continues

An India-linked tanker, the Marshall Islands-flagged Sarv Shakti, has successfully transited the Strait of Hormuz, a rare crossing that underscores the country's ongoing struggle to alleviate an historic energy crisis. The very large gas carrier, which is laden with around 45,000 tons of liquefied petroleum gas (LPG), appeared to move into the Gulf of Oman after sailing past Iran's Larak and Qeshm islands on Saturday, according to ship-tracking data.

The Sarv Shakti's journey marks the first observed passage by an India-linked tanker since a weeks-old US blockade of ships tied to Iran began, pushing transits through Hormuz back down to almost zero. It is one of the largest carriers to make the outbound crossing since a chaotic weekend last month, when the strait was briefly opened and then rapidly closed.

India's Dependence on LPG

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As the world's third-largest oil importer and the second-biggest consumer of LPG, India has scrambled to fill the supply gap left by Middle East producers. Acute shortages of the cooking fuel have triggered panic, queues, and pared-down menus. New Delhi has focused on the safe passage of LPG carriers since the US and Israel began strikes on Iran at the end of February, even ordering its own ports to prioritize these tankers for berthing and discharging, while cranking up domestic production.

Recent Developments

The US blockade of ships tied to Iran began in late February, and since then, traffic in the Strait of Hormuz has returned to a near-standstill. However, India has managed to move eight LPG vessels through Hormuz during the conflict after bilateral negotiations with Tehran, and has been working on other exits. In addition, India has raised domestic production of LPG by 60% to 54,000 tons in order to cope with the shortage.

QuarterIndia's LPG Consumption (tons/day)Change from Previous Quarter
Q1 202480,000-10,000
Q4 202390,000

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Ship Transit Details

The Sarv Shakti entered the Persian Gulf in early February and received its cargo via a ship-to-ship transfer off Dubai. However, Bloomberg News could not immediately identify the exact origin of the cargo. A full transit of Hormuz can take about 10 to 14 hours, and electronic interference in the region can falsify the apparent position of a ship. Some vessels may also spoof, or go dark, during transits, in order to hide their tracks.

Ship Ownership and Management

Dubai-based Foresight Group Services Ltd. is listed as the carrier's manager, with its owner Zhe Yin Shan Zhou No. 4 Tianjin sharing the same address on database Equasis. Foresight Group did not immediately respond to a query submitted via its website.

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