HPCL Seeks LPG Tanker from Russia Amid Supply Crisis
HPCL issues rare tender seeking LPG tanker to load from Russian port
Business Standard
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Hindustan Petroleum Corporation Limited (HPCL) has issued a rare tender for a liquefied petroleum gas (LPG) tanker to load propane and butane from Ust-Luga port in Russia. This move comes as India faces a severe LPG supply crisis, exacerbated by disruptions in Middle Eastern supplies.
- 01HPCL is seeking a tanker for immediate loading of LPG from Russia.
- 02The tender specifies 12,000 metric tons of butane and 8,000 tons of propane.
- 03The vessel must not be under sanctions and have no links to Iran.
- 04India is diversifying its LPG sources due to a supply crisis.
- 05Last year, India consumed 33.15 million tons of LPG, with 60% sourced from imports.
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Hindustan Petroleum Corporation Limited (HPCL), a state-run company in India, has issued a rare tender for a liquefied petroleum gas (LPG) tanker to load 12,000 metric tons of butane and 8,000 tons of propane from Ust-Luga port in Russia. This tender reflects India's urgent need for LPG amid its worst supply crisis in decades, largely due to disruptions in supplies from the Middle East following the closure of the Strait of Hormuz due to the ongoing U.S.-Israeli conflict with Iran. The tender document specifies that the vessel must not be under sanctions and must have no connections to Iran. As part of efforts to mitigate the crisis, Indian authorities are exploring LPG imports from a wider range of countries, including the U.S., Norway, Canada, and Russia. In 2022, India consumed 33.15 million tons of LPG, with imports accounting for approximately 60% of its total demand, predominantly sourced from the Middle East.
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This tender could help stabilize LPG supplies in India, potentially preventing price hikes and ensuring availability for consumers.
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