India's First Iranian Crude Cargo Since 2019 Never Arrived — Here is What Happened
India denies payment hurdles after Iran-bound tanker diverts mid-voyage to China.
An Iran-bound crude oil shipment that was initially headed for India changed course mid-voyage and began moving toward China, prompting speculation over payment issues or sanctions-related hurdles. The Ministry of Petroleum and Natural Gas clarified that such claims were “factually incorrect” and assured that there are no payment problems concerning Iranian crude imports.
The vessel in question, the Aframax tanker Ping Shun, had earlier signalled Vadinar in Gujarat as its destination but later altered its route toward Dongying in China, according to ship-tracking firm Kpler. The ministry emphasised that Indian refiners continue to procure oil from a diverse range of global suppliers, with full flexibility to source crude based on commercial and operational considerations.
Officials explained that mid-voyage changes in oil shipments are common in global trade. Cargo destinations often serve as indicative ports rather than final commitments, and rerouting can depend on trade optimisation, operational factors, and market conditions rather than any disruption or diplomatic friction.
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The ministry pointed to ongoing energy imports from Iran, noting that the LPG vessel Sea Bird, carrying about 44,000 tonnes of liquefied petroleum gas, docked at Mangalore on April 2 and is currently unloading. “India’s crude oil requirements remain fully secured for the coming months,” the ministry reiterated, assuring markets amid ongoing tensions in West Asia.
The Ping Shun cargo attracted attention as it was expected to be India’s first Iranian crude shipment since 2019, when imports were halted due to tighter US sanctions. Loaded from Iran’s Kharg Island around March 4, the tanker carries an estimated 600,000 barrels, with its earlier declared arrival in Vadinar scheduled for April 4.
Indian refiners had recently explored opportunities to purchase Iranian oil at sea following a temporary US sanctions waiver, which allows limited transactions until April 19. Historically, Iran was a key supplier, contributing up to 11.5% of India’s crude imports, with light and heavy grades favoured for refinery compatibility and pricing advantages.
