India Resumes Iranian LPG Imports After 4 Years on Sanctions Relief

ENERGY
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AuthorVihaan Mehta|Published at:
India Resumes Iranian LPG Imports After 4 Years on Sanctions Relief
Overview

India has resumed buying liquefied petroleum gas (LPG) from Iran, the first purchase since 2019. This follows a temporary easing of U.S. sanctions on Iran's energy sector. The tanker Aurora is heading to India's west coast port of Mangalore to deliver the cargo to state-run fuel companies, aiming to ease the country's gas shortage and secure cooking gas supplies amid global shipping issues.

India Buys Iranian LPG Again After Four Years

India has once again begun importing liquefied petroleum gas (LPG) from Iran, marking the first purchase since 2019. This shift comes after the U.S. temporarily eased sanctions on Iran's energy sector. The move is critical as India faces one of its worst gas crises in decades and seeks to boost domestic cooking gas supplies.

Sanctions Easing and Critical Energy Needs

India had stopped buying energy from Iran in 2019 due to Western sanctions. Now, the tanker Aurora, which was reportedly headed for China, is en route to Mangalore on India's west coast. This shipment is vital for India's energy security, especially with global energy supplies facing disruptions, partly due to Middle East conflicts.

Delivery and Payment Details

The imported LPG will be distributed to three large state-owned fuel companies: Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp. Reports suggest the cargo was purchased from a trader, with payments possibly made in rupees. This hints at India exploring alternative payment methods. However, official confirmation from a federal shipping ministry source stated no loaded cargoes from Iran were known at that time.

India's Large LPG Consumption

India is the world's second-biggest importer of LPG, using 33.15 million metric tons last year. Imports cover about 60% of this demand, with most traditionally coming from the Middle East. India is also working to manage other LPG shipments stuck in the Persian Gulf and near the Strait of Hormuz.

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