The Marshall Islands-flagged tanker Symi, an LPG carrier transporting nearly 20,000 tonnes of liquid propane and butane, has safely docked at Deendayal Port in Kandla. The vessel crossed the Strait of Hormuz on May 13, marking another crucial movement of energy supplies through the key maritime route amid the ongoing Middle East crisis. The vessel has 21 crew members onboard, with eight Ukrainians and 13 Filipinos.
Strategic Passage Amid Tensions
Symii was the 11th LPG tanker to cross the Strait in the current monitored operations. According to officials, these safe passages were made possible through close coordination between the Directorate General of Shipping (DG Shipping) and the ministries of external affairs, defence, and petroleum and natural gas. This collaborative effort underscores the importance of maintaining energy supply routes during geopolitical uncertainties.
Impact on India's Crude Reserves
These shipments come at a time when global energy supplies have been under pressure due to the ongoing Middle East conflict. India’s crude reserves have shrunk sharply in recent months as the Strait of Hormuz has continued to see disruptions for over 75 days now, with stockpiles dropping by nearly 15%. Data from commodities analytics firm Kpler estimates that India’s total crude stockpile, including strategic petroleum reserves, refinery holdings and commercial storage, but excluding pipeline stocks, has fallen to 91 million barrels from 107 million barrels recorded at the end of February, when the conflict began.
Refinery Operations Under Strain
Despite the decline in imports, Indian refiners have so far kept processing activity steady, continuing refinery operations without significant cuts. However, analysts believe that if disruptions to crude supplies continue over a longer period, refiners may have little choice but to reduce refinery runs or scale back crude processing levels. This sustained pressure on supplies may also be one reason behind Prime Minister Narendra Modi’s recent appeal to citizens to conserve fuel.
Inventory Levels and Global Trends
At current consumption levels of about 5 million barrels a day, India’s available crude inventory is estimated to cover nearly 18 days of demand, according to Kpler’s calculations. The fall in India’s reserves comes as global crude inventories are also seeing a steep drawdown. The International Energy Agency (IEA) said worldwide oil stockpiles declined by 129 million barrels in March, followed by a further 117 million barrel drop in April.
Analysts warn that if the situation persists, the impact on India's energy security could be significant, necessitating further measures to stabilize supplies and manage demand.
