Iran Oil Exports to China Shrink
Crude oil exports from Iran to its biggest buyer, China, shrank last month on tighter U.S. sanctions and refinery maintenance, Bloomberg has reported, citing data from Vortexa. Per that data, Iran shipped a little over 1.1 million barrels of crude to China daily, which was 20% lower than export flows in May 2024. Compared to April, the May figure is around 400,000 bpd lower. The data is not entirely certain, however, as tankers carrying Iranian crude abroad use a variety of moves to mask their origin and route. Kpler recently reported that a growing number of tankers carrying Iranian oil to China were now switching off their tracking devices that conceal their location. “Ship-to-ship transfers have been used to mask the origin of those cargoes,” a Kpler analyst told Bloomberg last week. “Now they’re switching signals off for longer, so that it’s now even harder to trace those flows back to the source, which is Iran,” Muyu Xu also said. Going forward, oil flows from Iran to China are likely to remain weaker than usual due to refinery maintenance, according to one Vortexa analyst, who said that “delayed seasonal refinery maintenance, […] is now expected to extend through July.” Chinese refiners also stocked up on cheap Iranian crude earlier in the year before Washington tightened the sanction noose, so their inventory levels should be quite comfortable for the time being. China is Iran’s biggest oil client, with the country’s private refiners buying most of Iran’s sanctioned crude. The two sides have established a trade relationship favorable for both. Iran gets to sell its crude that nearly everyone else shuns, while China’s independent refiners, the so-called teapots, get cheap oil. The U.S. and Iran are currently negotiating a new nuclear deal that could see the Trump administration lift sanctions but for that to happen, Iran would have to agree to completely suspend any uranium enrichment activities. Tehran has indicated it is not willing to do that.
ONGC says losing money in Assam, counters protesting employees
India’s top oil and gas producer ONGC on Tuesday said it is losing money in Assam because of low production and high employee headcount, as it countered allegations of protesting employees over stoppage of contentious overtime payment. In a statement, Oil and Natural Gas Corporation (ONGC) emphasised that it is hiring locally and is investing heavily in the local community in Assam. Reacting to a a sit-in by members of the ONGC Purbanchal Employees’ Association (OPEA) at the Assam Asset in Nazira, the company said the demonstration, while peaceful, has been primarily initiated as a protest against discontinuation of a particular overtime payment, “which was not admissible”. “The company is losing money while continuing its operations at Assam for the last few years; one of the reasons being low production and high manpower,” it said. It went on to state that the claim of the Union with respect to medical facilities being stopped was “factually incorrect”. “The change from direct credit to reimbursement mode has been introduced to curb misuse and malpractice related to a unique welfare facility the company provides to its in-service as well as to its former employees,” it said. Despite financial pressures linked to rising production costs in the Assam Asset, ONGC said it continues to maintain a significant presence in the region. The company reiterated “its commitment to Assam through a wide range of Corporate Social Responsibility (CSR) initiatives. These include sustained investment in education, healthcare, infrastructure, and skill development. The Siu-Ka-Pha Hospital at Sivasagar is one such flagship project providing healthcare to the locals.” While the current changes may cause short-term friction, they are aimed at ensuring long-term sustainability for ONGC’s operations in Assam. The situation remains stable, with dialogue channels open between management and employee representatives.
Oil India’s subsidiary to build major aviation fuel plant in Odisha under expansion push
Oil India Limited’s subsidiary Numaligarh Refinery limited is planning to set up a plant of substantial aviation fuel in Odisha. Chairman NRL and CMD OIL, Ranjit Rath while talking to media persons on Monday in Guwahati said that 200 KTPA (kilo-tonnes per annum) is part of net zero initiative. “2040 is the target of net zero therefore there are two prolonged strategies one doing net zero and another adding a value addition preposition.” He added, “As we are witnessing a 7 percent growth year on year, going forward we realised that substantial aviation fuel will be a good business model. A DPR is being prepared, as it will in coastal areas five year down the line there may be opportunity of export. However, we are not foreseeing exports as there will be enough demand within the country.” MD NRL B J Phukan said that from the bamboo dust of the bio refinery which is expected to come up this year in Assam there is planning to produce activated carbon. “We are taking assistance from IIT Guwahati for biolyser. Activated carbon is in high demand in the cosmetic industry even toothpaste uses it.” NRL is increasing its capacity from 3 to 9 MMTPA with a 1635 km Km Crude Oil Pipeline from Paradip Port to Numaligarh in Assam. The Assam Bio Ethanol Private Limited, of which the Numaligarh Refinery Limited (NRL)is the major stakeholder, is expected to start commercial production by the middle of this year.
India can increase imports of shale gas, LNG, crude from US: Official
India’s exports to the US are rising, and it can increase imports of products like shale gas, LNG, and crude oil from America to diversify its import basket, as prices of these items are lower in the US, an official said. Teams of both countries will start next round of talks this week here on the proposed bilateral trade agreement. Though India is looking for a balanced and a mutually beneficial trade agreement with the US, “what we get as compared to other countries, will determine what we ultimately finalise in the deal,” the official said. Asked if some kind of interim trade deal can be agreed upon before July 9, the official said a lot of uncertainties are there at present because of developments like the Trump administration’s plan to further increase tariffs on steel and a stay on a court order against the US authorities’ decisions on tariffs. But within the constraints of uncertainties, India has to find pathways which are good for the country, the official said. “Exports are increasing… there are several things we can buy from the US… For example shale gas, LNG, crude oil. The more diversified our sources, the greater the benefit for us. Prices are also low in the US,” the official, who did not wish to be named, said. The official added that the US is a major trading partner of India, with a significant trade surplus in India’s favour. Moreover, a large number of jobs are linked to exports to the US. India has already reserved its right to impose retaliatory tariffs against US duties on steel and aluminium. It has also sought consultations under the WTO norms on US tariffs on auto components. Asked if India is considering to take similar measures in more products, the official said India will protect its interests. “We will see what is good for India… accordingly we will take decisions,” the official said, adding, “Today lot of uncertainties are there… because of that court order… we will discuss how to address these issues… lot of uncertainties are there”. In February, US President Donald J Trump and Prime Minister of India Narendra Modi announced plans to negotiate the first tranche or phase of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall (September-October) of 2025. It is aimed at more than doubling the bilateral trade to USD 500 billion by 2030 from the current level of USD 191 billion. The US remained India’s largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at USD 131.84 billion. The US accounts for about 18 per cent of India’s total goods exports, 6.22 per cent in imports, and 10.73 per cent in the country’s total merchandise trade.