India is the biggest buyer of Russian seaborne crude oil, making Moscow’s bid to secure Indian gasoline an unusual reversal in the countries’ energy trade relationship.
New Delhi: Top Russian energy companies have approached Indian refiners for more gasoline after Ukrainian strikes knocked out a significant portion of Russia’s refining capacity, two sources familiar with the matter told Reuters on Wednesday.
India is the biggest buyer of Russian seaborne crude oil, making Moscow’s bid to secure Indian gasoline an unusual reversal in the countries’ energy trade relationship, highlighting the extent of the disruption caused by the Ukrainian attacks. Moscow is witnessing its worst gasoline crisis.
At least one cargo of Indian gasoline has already sailed to Russia, and more are expected, with nearly 40% of Russia’s refining capacity unlikely to return for at least two months if there are no further attacks, one of the sources with knowledge of the matter said.
Rosneft, Gazprom Neft and Lukoil are among the companies that have contacted Indian counterparts, including private and state-run refiners, the source said, adding that any supplies would be routed through traders if deals are agreed.
Sources at three Indian state refiners said Russian companies had approached them for more gasoline but that they have no surplus volumes to export. They and the other two sources spoke on the condition of anonymity to discuss sensitive matters.
Major Indian state refiners, including Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp, the three Russian oil companies, and Russia’s energy ministry did not respond to Reuters emails seeking comment.
Indian Oil Minister Hardeep Singh Puri said earlier this month that Indian companies were not selling fuel to Russia, but it was possible that Russia purchased Indian-origin fuel from traders.
SHIP-TO-SHIP TRANSFERS
One of the sources familiar with the matter said any further supplies from India could reach Russia through ship-to-ship transfers. Russia would seek supplies of diesel if Ukrainian attacks knocked out further refining capacity, though there were enough supplies of the fuel for now, the source added.
Reuters reported early this month that traders have sold gasoline produced by Indian refiner Nayara Energy, partly owned by Rosneft, to Russia.
Tanker Agni loaded with 42,000 metric tons of gasoline from Nayara’s Vadinar port between June 18 and 20, did a ship-to-ship transfer of the cargo onto the vessel Garnet at Damietta Light near Egypt between July 6 and 7, Kpler said in a note citing satellite imagery. Garnet is expected to reach Vitino in Russia around July 26, the ship tracking agency said.
Shipping sources said another tanker, Varg, loaded with gasoline from Nayara’s Vadinar port, was bound for Suez, where the cargo is expected to be transferred to another vessel off Egypt for onward shipment to Russia.
Nayara told Reuters it “has neither sold nor has any plans to sell fuel to Russian companies”.
“Nayara Energy remains committed to serving the Indian market and meeting the demand for fuels across the length and breadth of India,” it said in response to questions from Reuters.
“As the country’s largest private sector fuel retailer, our only priority is to ensure optimum supplies to over 7,000 stations and other channels including bulk customers.”
