India’s top refiner and fuel retailer last week floated three tenders to charter a very large gas carrier (VLGC), a very large crude carrier and a Suezmax.
Indian state refiners mostly buy oil and LPG from the Middle Eastern producers on free-on-board basis.
A VLCC typically carries 2 million barrels of oil, and a VLGC can hold about 45,000 metric tons of LPG – a mix of propane and butane used in India mainly as a cooking gas. A Suezmax carries about one million barrels of oil.
“No one wants to take a risk as yet of going into the Strait. Most ship owners are in wait-and-watch mode as they want clarity on the terms of getting into the strait,” said a ship broker.
Indian Oil was seeking to lift about 45,000 metric tons of LPG between June 30 and July 4 from the ports of Ras Laffan in Qatar, Mina Al Ahmadi in Kuwait, or Ruwais in the UAE.
The refiner was looking to charter a VLCC to lift oil from Mina Al Ahmadi between June 28 and 29 and a Suezmax for loading cargo between June 29 and 30 from Ras Al Khafji port in Saudi Arabia for deliveries on India’s west coast.