New Delhi: India’s first shipment of Iranian crude oil since 2019 may be headed to a Gujarat port, according to ship-tracking data, a report by PTI said.

Indian refiners are exploring purchases of Iranian oil cargoes currently at sea after Washington recently granted a limited sanctions waiver. Citing industry data, the report noted that the vessel Ping Shun is en route to Vadinar with around 600,000 barrels of crude, marking the first such movement since May 2019, when imports had ceased due to tightened US sanctions.

According to Sumit Ritolia, Lead Research Analyst at Kpler, the Indo-Iran oil trade appears to be reviving, aided by a 30-day window provided by the US administration for Iranian oil already “on the water” amid regional tensions. The development comes at a time when Indian refiners are dealing with tightening inventories.

While the buyer of the cargo remains unclear, Vadinar hosts a 20 million tonne-per-annum refinery operated by Nayara Energy, backed by Russian oil major Rosneft, and also serves as a supply point for inland refineries such as BPCL’s Bina facility.

The oil ministry has maintained that any decision to resume imports from Iran will be guided by techno-commercial considerations. Historically, India was a major importer of Iranian crude, which at its peak accounted for about 11.5 per cent of total imports due to favourable pricing and refinery compatibility.

Imports, however, halted in May 2019 following stricter US sanctions. Before that, India had imported around 518,000 barrels per day in 2018, which declined to 268,000 bpd between January and May 2019 during a sanctions waiver period.

The report further noted that the Aframax tanker Ping Shun, carrying Iranian crude loaded from Kharg Island in early March, is the first vessel since 2019 to signal Vadinar as its destination. It is expected to arrive around April 4.

The US waiver, aimed at easing global oil prices amid geopolitical tensions involving Iran, remains valid until April 19. An estimated 95 million barrels of Iranian oil are currently at sea, of which roughly 51 million barrels could potentially be directed to India.

However, payment mechanisms remain uncertain as Iran continues to be excluded from the SWIFT global banking network, complicating financial transactions. Previous payments were routed through intermediary channels such as Turkish banks, but such arrangements are no longer in place, the report added. DeshGujarat