Petroleum Ministry Refutes Crude Cargo Diversion To China Due To ‘Payment Issues’

The Petroleum Ministry on Saturday refuted the reports alleging that an Iranian crude cargo heading to India was diverted to China due to ‘payment issues’.

In an X post, the Petroleum Ministry stated that India has faced no payment hurdle in securing crude oil imports. Rubbishing the media reports, the ministry said that the Bills of Lading often carry indicative discharge ports and destinations, and on-sea cargoes can change destinations mid-voyage based on trade optimisation and operational flexibility.

The ministry said, “The news reports and social media posts of an Iranian crude cargo being diverted from Vadinar, India, to China due to ‘payment issues’ is factually incorrect. India imports crude oil from 40+ countries, with companies having full flexibility to source oil from different sources & geographies based on commercial considerations. Amid Middle East supply disruptions, Indian refiners have secured their crude oil requirements, including from Iran, and there is no payment hurdle for Iranian crude imports as per some rumours being circulated.”

“Claims on vessel diversion ignore how oil trade works. Bills of Lading often carry indicative discharge ports, destinations and on-sea cargoes can change destinations mid-voyage based on trade optimisation and operational flexibility,” the post stated.

Addressing the rumours around LPG supply, the ministry clarified that the LPG vessel Sea Bird, carrying around 44 TMT Iranian LPG, berthed at Mangalore on Thursday and is currently discharging.

“It is reiterated that India’s crude oil requirements remain fully secured for the coming months. On LPG too, some claims being made are incorrect as LPG vessel Sea Bird carrying around 44 TMT Iranian LPG berthed at Mangalore, India on April 2 and is currently discharging,” the X post read.

This comes after media reports, citing a commodity market analysis firm, claimed that a crude oil vessel heading to India diverted to China due to payment issues.

Earlier today, India-flagged large gas carrier Green Sanvi safely transited the Strait of Hormuz on Friday night, carrying approximately 46,650 metric tonnes of Liquefied Petroleum Gas (LPG) cargo, official sources said.

The Centre has been in talks with Iranian authorities to allow Indian vessels to pass through the Strait of Hormuz amid a maritime blockade due to the ongoing West Asia conflict.

The West Asia crisis began on February 28 with US-Israel strikes on Iran, and subsequent Iranian retaliation engulfed the region in the conflict, affecting global fuel supplies. (ANI)