A Russian oil-laden tanker that was bound for China has U-turned in the South China Sea, and is now returning to New Delhi amid New Delhi’s renewed push to secure its energy supplies amid disruption due to the Iran war. At least seven tankers are set to arrive in India, out of which Aqua Titan, medium-sized crude oil tanker, is set to arrive at New Mangalore port on March 21. The tanker was supposed to reach Chinese port of Rizhao, however, it made a U-turn in mid-March. The Suezmax Zouzou N, another tanker is also heading towards Sikka port in Gujarat’s Jamnagar and is expected to arrive on March 25.
This development comes amid the US issued a 30-day waiver to India to purchase Russian oil after the closure of Strait of Hormuz. At least 20% of the world’s global oil and gas passes through the Strait of Hormuz. It is also crucial for India as out of 60% of India’s total oil imports, 90% comes through Strait of Hormuz. The arrival of Russian crude will provide relief to India. Nearly half of India’s LNG imports and most of its LPG shipments also transit the key chokepoint, located between Oman and Iran. There is tension in India’s LPG supplies and recently the government has increased the prices of the commercial LPG cylinders.
Days after Iran allowed Indian ships to pass through the Strait of Hormuz, three Indian-flagged tankers have arrived at Indian ports after transiting the strait. Approximately 20 ships are still waiting for the clearance to pass through the channel. The arrival of seven tankers carrying Russian oil will provide short-term relief to India.
