Two LPG Tankers Navigate Hormuz to Alleviate India’s Shortage

Two tankers carrying liquefied petroleum gas (LPG) have successfully navigated the Strait of Hormuz, en route to India, a move that offers potential relief from the ongoing LPG shortage exacerbated by the conflict in the Persian Gulf. The vessels were granted safe passage through the strategically vital strait, which has faced significant disruptions in recent weeks.

The announcement came from Indian Foreign Ministry spokesman Randhir Jaiswal on March 14, 2024. The situation remains precarious, as there are still 22 Indian-flagged vessels, including six LPG carriers, one liquefied natural gas (LNG) ship, and four crude oil tankers, currently stranded in the Persian Gulf, according to Rajesh Kumar Sinha, special secretary at the shipping ministry.

India relies heavily on LPG for cooking, industrial processes, and petrochemical manufacturing, making it particularly vulnerable to supply disruptions. As the world’s second-largest importer of LPG, India sources approximately 90% of its supply from the Middle East. The country also imports a significant amount of crude oil from the region and has been in negotiations with Iran to facilitate the passage of tankers through the strait.

The two tankers, the Shivalik and Nanda Devi, received clearance to transit the strait, which had been largely impassable for nearly two weeks. This breakthrough reportedly followed a deal between New Delhi and Tehran, although details remain confidential as officials from both sides have not publicly confirmed the agreement.

An Iranian official, who chose to remain unnamed due to the sensitivity of the matter, noted that he could not verify any specific arrangement regarding the passage of these vessels. The Shivalik is expected to arrive at Mundra Port on March 16, while the Nanda Devi is projected to reach the destination a day later. Both ships are owned by the Shipping Corporation of India Ltd. and chartered by the state-run Indian Oil Corporation. They loaded their cargo at Ras Laffan in Qatar.

The successful passage of these tankers highlights the ongoing challenges posed by geopolitical tensions in the Persian Gulf, which have significant implications for energy supply chains. As India continues to face LPG shortages, the arrival of these vessels may provide a crucial respite, but the broader context remains uncertain as the situation in the region evolves.