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India's LPG Tanker Makes Historic Passage Through Strait of Hormuz Amid Ceasefire

The Indian-flagged LPG tanker Jag Vikram has made a historic transit through the Strait of Hormuz, the first since a U.S.-Iran ceasefire was announced. This significant movement comes as India navigates its heavy reliance on energy imports, with many vessels still stranded in the region. The tanker, owned by Great Eastern Shipping, is estimated to be carrying around 20,000 tonnes of LPG. As India works to restore energy supplies, the situation highlights the complexities of global energy dependencies and the ongoing geopolitical tensions in West Asia.
 

Significant Transit of Indian LPG Tanker


New Delhi: The Indian-flagged liquefied petroleum gas (LPG) tanker, Jag Vikram, has successfully navigated the Strait of Hormuz, marking a significant milestone as it is the first Indian vessel to do so since a temporary ceasefire was established between the United States and Iran, as indicated by ship-tracking data.


The tanker made its way through this crucial waterway late Friday night into Saturday morning and was reported to be in the Gulf of Oman, heading eastward by Saturday afternoon.


Jag Vikram is the ninth Indian ship to depart the Persian Gulf since early March, while approximately 15 other India-flagged vessels are still in the area, waiting for safe passage.


This mid-sized gas carrier, owned by the Mumbai-based Great Eastern Shipping Company, boasts a deadweight capacity exceeding 26,000 tonnes.


Trade experts suggest that it may be transporting around 20,000 tonnes of LPG.


When the conflict in West Asia escalated, at least 28 India-flagged vessels were present in the Strait of Hormuz region, with 24 located on the western side and four on the eastern side.


Before the transit of Jag Vikram, eight vessels from the western side and two from the eastern side had successfully reached safety. Additionally, several foreign-flagged ships carrying cargo destined for India remain stranded in the Persian Gulf.


MarineTraffic data reveals that hundreds of vessels are still in the region, including 426 tankers, 34 LPG carriers, and 19 LNG vessels, many of which have been effectively immobilized due to the ongoing disruptions.


As the world's third-largest energy consumer and fourth-largest gas user, India relies heavily on imports, sourcing about 88% of its crude oil, nearly half of its natural gas, and around 60% of its LPG from abroad, highlighting its vulnerability to external supply chains.


A significant portion of crude imports, approximately 40% of gas, and up to 85-90% of LPG shipments originate from Gulf nations and transit through the Strait of Hormuz, a vital global energy route that was closed during the recent conflict.


Earlier this week, the United States and Iran reached a conditional two-week ceasefire agreement that includes reopening the Strait for shipping.


In response to disruptions in energy supplies from the Gulf, India had to limit LPG deliveries to commercial entities such as hotels and restaurants. However, it has since restored about 70% of pre-crisis volumes by securing alternative sources.


Initially, natural gas supplies were reduced for industries, including fertilizer plants, to prioritize CNG for transportation and piped cooking gas for households. Supplies to fertilizer units have been partially reinstated, with operating urea plants receiving around 80% of their recent average consumption, while overall allocations to the sector have been increased to approximately 95% this week.


Gas availability for other industrial and commercial users is gradually improving, although it remains below normal levels.


City gas distributors have been instructed to prioritize piped natural gas connections for commercial establishments, including hotels, restaurants, and canteens, as part of efforts to reduce reliance on LPG.