Investing.com — Two liquefied petroleum gas (LPG) tankers have successfully navigated the Strait of Hormuz and are en route to India, signaling a potential breakthrough in the supply crisis caused by the ongoing conflict in the Persian Gulf.
The transit of the vessels, which were granted safe passage following a reported deal between New Delhi and Tehran, provides a critical lifeline to an Indian economy grappling with acute shortages of cooking and industrial fuel.
The tankers, identified as the Shivalik and Nanda Devi, were chartered by the state-run Indian Oil Corp. (NS:IOC) and are owned by Shipping Corp of India Ltd. (NS:SCI). According to sources familiar with the matter, the ships were allowed to traverse the waterway, which has been effectively shuttered for nearly a fortnight, under a sensitive diplomatic arrangement.
Iranian officials and the Indian Ministry of External Affairs have not formally confirmed the agreement. Ship-tracking data indicates the Shivalik has already cleared the strait after loading at Ras Laffan in Qatar.
The development is particularly significant for India, the world’s second-largest importer of LPG. The country relies on the Middle East for 90% of its supply, using the fuel for everything from household cooking to petrochemical production.
India’s government in New Delhi sees securing this “safe corridor” as a tactical necessity. Domestic gas dealers have faced massive crowds, and industrial units warn of looming shutdowns due to the supply squeeze.
The successful passage of the two vessels has sparked hope that more tankers currently lined up near the mouth of the Persian Gulf may soon follow. Analysts suggest that the use of AIS signals identifying the tankers as “government vessels” may be a key component of the de-escalation strategy used to navigate the high-risk zone.
Indian consumers will get a temporary relief after the arrival of the two ships next week, but the “sticky” nature of the regional conflict remains a primary concern for energy markets. Indian Oil Corp. and other state-run refiners will now focus on whether the latest deal represents a one-off exception or the start of a more stable “energy bridge” through one of the world’s most volatile maritime chokepoints.
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