Oil imports from Iran decline to 7.3% in first 11 months of FY13 from 11% in FY12
India is unwilling to impose restrictions on its oil imports from Iran and will continue its energy ties with Tehran as long as it gets a “good deal” and logistic support, even as one national insurance company has stepped in to provide reinsurance for oil imports from Iran, staving a crisis for now, senior government officials told reporters on India’s energy strategy.
New Delhi’s reiteration comes even as oil imports from Iran have slowed following US pressure to reduce trade ties with Tehran. India is the second biggest importer of crude from Iran but has reduced imports to around 7.3% in the period from last April to February, compared to 11% in 2011-12. India’s stand on energy security comes even as the US and the EU tighten sanctions against Iran. Prime Minister Manmohan Singh is on his way to an intergovernmental conference in Germany.
Lack of logistic support, particularly in financing, has over the months created problems for Indian refining companies; some like Chennai Refineries are configured to give the best production yields on Iranian crude oil. The Reserve Bank of India had to work out special payment channels for Iranian oil imports as restrictions were imposed on the dollar trade with Tehran. Recently, General Insurance Corporation agreed to provide insurance to imports from Iran.
India is seeking to diversify its oil import basket following international pressure to reduce dependence on Iran oil. The emergence of Iraq as a key oil exporter in recent times has shifted the domestic oil axis significantly, one of the government officials in direct knowledge of the trade, said. India, is however, unlikely to officially admit that imports from Iran are being gradually reduced on US pressure.
Reliance Industries Ltd (RIL), the country’s largest private oil company, used to export a large portion of its petroleum produce, primarily gasoline, to Iran till a few years ago. Talks on an India-Pakistan-Iran pipeline, proposed to ensure regular oil supplies to energy-starved India, too have almost fallen through with it remaining a paper project. India is instead negotiating with Turkmenistan, Afghanistan and Pakistan for a cross-country pipeline. The plan of importing some of Iran’s natural gas as liquefied gas too is now in cold storage.
India is unwilling to impose restrictions on its oil imports from Iran and will continue its energy ties with Tehran as long as it gets a “good deal” and logistic support, even as one national insurance company has stepped in to provide reinsurance for oil imports from Iran, staving a crisis for now, senior government officials told reporters on India’s energy strategy.
New Delhi’s reiteration comes even as oil imports from Iran have slowed following US pressure to reduce trade ties with Tehran. India is the second biggest importer of crude from Iran but has reduced imports to around 7.3% in the period from last April to February, compared to 11% in 2011-12. India’s stand on energy security comes even as the US and the EU tighten sanctions against Iran. Prime Minister Manmohan Singh is on his way to an intergovernmental conference in Germany.
Lack of logistic support, particularly in financing, has over the months created problems for Indian refining companies; some like Chennai Refineries are configured to give the best production yields on Iranian crude oil. The Reserve Bank of India had to work out special payment channels for Iranian oil imports as restrictions were imposed on the dollar trade with Tehran. Recently, General Insurance Corporation agreed to provide insurance to imports from Iran.
India is seeking to diversify its oil import basket following international pressure to reduce dependence on Iran oil. The emergence of Iraq as a key oil exporter in recent times has shifted the domestic oil axis significantly, one of the government officials in direct knowledge of the trade, said. India, is however, unlikely to officially admit that imports from Iran are being gradually reduced on US pressure.
Reliance Industries Ltd (RIL), the country’s largest private oil company, used to export a large portion of its petroleum produce, primarily gasoline, to Iran till a few years ago. Talks on an India-Pakistan-Iran pipeline, proposed to ensure regular oil supplies to energy-starved India, too have almost fallen through with it remaining a paper project. India is instead negotiating with Turkmenistan, Afghanistan and Pakistan for a cross-country pipeline. The plan of importing some of Iran’s natural gas as liquefied gas too is now in cold storage.
Next Story
