Latest news with #VeryLargeCrudeCarrier
The Hindu
16 hours ago
- General
- The Hindu
Fire on waters: on India and maritime accidents
The Indian coast needs to be protected against three types of major peacetime maritime accidents involving merchant ships: sinking of merchant ships, causing the loss of cargo, disruption of maritime traffic, and environmental damage; fire onboard merchant vessels that can seriously threaten not just the environment but also life and property on the coast; and oil spills. The recent fire onboard MV Wan Hai 503, that started with explosions when the ship was some 44 nautical miles off the Azhikkal coast in Kannur, Kerala, on June 9, has been successfully controlled now. Photographs of the ship showed a cocktail of smoke of brown, white, grey and black colours billowing out, indicating that many substances were burning. The cargo manifest showed that more than 140 of the 1,754 containers had various types of hazardous cargo. Coast Guard officials report that the raging Wan Hai had started drifting dangerously towards the coast even as firefighting was on and the sea remained rough under monsoon conditions. A tow rope was passed onto the ship but it snapped. An Indian Navy helicopter flew in to airdrop a salvage team and pass a wire rope that was made of steel, which was then used to tow the ship 45 nautical miles away from the coast where the depth is nearly one kilometre. The owner of the vessel pitched in by commandeering tugs through their agents. Wan Hai does not pose an immediate danger to the Indian coast now. Smoke is still seen from the ship and there are hot spots, but it is now up to the ship owner to salvage the vessel after completely putting out the fire. Most of the patrol vessels, the workhorse of the Coast Guard, are now fitted with firefighting equipment since firefighting is a key mandate of the agency. While hazardous cargo on containers are indeed a major fire hazard, a more severe fire hazard is oil. Gas-carrying merchant ships are perhaps the greatest fire and explosion hazards. Nightmare scenarios that can bring the world to its knees involve gas carrier accidents at choke points such as the Suez Canal or the Strait of Malacca off Singapore. In 2020, the Indian Coast Guard and Navy successfully put out a massive fire that broke out off Colombo on the Very Large Crude Carrier (VLCC), New Diamond, chartered by the Indian Oil Corporation. The VLCC was carrying 2,70,000 tonnes of crude oil and bound for Paradip in Odisha. That these ships were structurally intact despite week-long infernos is a testament as much to the maritime firefighting capabilities of India as the advanced design, materials and construction of the ships. Quick salvage of sunk ships and fighting oil spills, which require quick, extensive and close multi-agency coordination, are the other areas where India needs to build and demonstrate more expertise.
Yahoo
22-03-2025
- Business
- Yahoo
New US sanctions to slow but not stop China's Iranian oil imports, traders say
By Chen Aizhu and Florence Tan SINGAPORE (Reuters) - Iranian oil shipments into China are set to fall in the near-term after new U.S. sanctions on a refiner and tankers, driving up shipping costs, but traders said they expect buyers to find workarounds to keep at least some volumes flowing. Washington on Thursday imposed new sanctions on entities including Shouguang Luqing Petrochemical, a "teapot," or independent refinery in east China's Shandong province, and vessels that supplied oil to such plants in China, the top buyers of Iranian crude. It was the fourth round of sanctions on Iran's oil sales since President Donald Trump's February call for "maximum pressure" on Tehran, including efforts to drive its crude exports to zero. Iranian oil flows to China had already dropped due to rising freight costs as earlier sanctions hit shipping capacity, said traders, including three directly involved in the business. A Chinese trading executive involved in Iranian oil business said the latest sanctions did not come as a surprise and expects that more plants or terminals could be targeted. "But once companies re-adjust their business structures, imports would continue," said the executive, referring to measures such as changing entities for oil payments. Still, imports may be curbed as the sanctions give larger private refiners pause, said a second Chinese trader. Freight costs for a Very Large Crude Carrier, or VLCC, sailing from waters near Malaysia, a key transshipment point for Iranian oil, to China's refining hub Shandong have more than doubled since late 2024 to $3-$4 per barrel, the first executive added. China's Iranian oil imports recovered in February to 1.43 million bpd, from 898,000 bpd in January, data from analytics firm Kpler showed. About 33 million barrels have been delivered this month, with volumes forecast to reach 1.7 million bpd before the latest sanctions, senior Kpler analyst Muyu Xu said, adding that discharge volumes for the rest of March could decline sharply due to the sanctions. Most Iranian oil shipments to China, which make up over 10% of its crude imports, are rebranded by traders as sourced from Malaysia. "This marks a clear escalation in sanctions policy, though not as severe as if a Chinese port had been designated," said Brian Leisen, commodities strategist at RBC Capital. 'INDISCRIMINATE AND ILLEGAL' China, which defends its trade with Iran as legitimate, on Friday reiterated its opposition to "indiscriminate and illegal" unilateral sanctions and pledged to protect the rights of Chinese enterprises, which one trader said buyers would take comfort from. Luqing, which operates a 160,000 bpd refinery, is among the larger regular buyers of discounted Iranian oil, according to traders. It is the second teapot sanctioned by the U.S. after Haiyou Petrochemical was designated in 2022. A person answering the phone at Luqing did not have immediate comment on Friday. The company did not immediately respond to an email seeking comment. Oil from Iran, Venezuela and Russia shunned by many Western buyers has saved Chinese refineries billions of dollars in recent years as flagging economic growth and stagnant fuel demand depress margins. One trader dealing in Iranian oil said a teapot operator seemed unfazed by Thursday's announcement. "Our regular client appeared nonchalant when I shared the sanction document translated into Chinese late last night and carried on asking for the latest Iranian oil quotes," the trader said. Sign in to access your portfolio
Yahoo
22-03-2025
- Business
- Yahoo
New US sanctions to slow but not stop China's Iranian oil imports, traders say
By Chen Aizhu and Florence Tan SINGAPORE (Reuters) - Iranian oil shipments into China are set to fall in the near-term after new U.S. sanctions on a refiner and tankers, driving up shipping costs, but traders said they expect buyers to find workarounds to keep at least some volumes flowing. Washington on Thursday imposed new sanctions on entities including Shouguang Luqing Petrochemical, a "teapot," or independent refinery in east China's Shandong province, and vessels that supplied oil to such plants in China, the top buyers of Iranian crude. It was the fourth round of sanctions on Iran's oil sales since President Donald Trump's February call for "maximum pressure" on Tehran, including efforts to drive its crude exports to zero. Iranian oil flows to China had already dropped due to rising freight costs as earlier sanctions hit shipping capacity, said traders, including three directly involved in the business. A Chinese trading executive involved in Iranian oil business said the latest sanctions did not come as a surprise and expects that more plants or terminals could be targeted. "But once companies re-adjust their business structures, imports would continue," said the executive, referring to measures such as changing entities for oil payments. Still, imports may be curbed as the sanctions give larger private refiners pause, said a second Chinese trader. Freight costs for a Very Large Crude Carrier, or VLCC, sailing from waters near Malaysia, a key transshipment point for Iranian oil, to China's refining hub Shandong have more than doubled since late 2024 to $3-$4 per barrel, the first executive added. China's Iranian oil imports recovered in February to 1.43 million bpd, from 898,000 bpd in January, data from analytics firm Kpler showed. About 33 million barrels have been delivered this month, with volumes forecast to reach 1.7 million bpd before the latest sanctions, senior Kpler analyst Muyu Xu said, adding that discharge volumes for the rest of March could decline sharply due to the sanctions. Most Iranian oil shipments to China, which make up over 10% of its crude imports, are rebranded by traders as sourced from Malaysia. "This marks a clear escalation in sanctions policy, though not as severe as if a Chinese port had been designated," said Brian Leisen, commodities strategist at RBC Capital. 'INDISCRIMINATE AND ILLEGAL' China, which defends its trade with Iran as legitimate, on Friday reiterated its opposition to "indiscriminate and illegal" unilateral sanctions and pledged to protect the rights of Chinese enterprises, which one trader said buyers would take comfort from. Luqing, which operates a 160,000 bpd refinery, is among the larger regular buyers of discounted Iranian oil, according to traders. It is the second teapot sanctioned by the U.S. after Haiyou Petrochemical was designated in 2022. A person answering the phone at Luqing did not have immediate comment on Friday. The company did not immediately respond to an email seeking comment. Oil from Iran, Venezuela and Russia shunned by many Western buyers has saved Chinese refineries billions of dollars in recent years as flagging economic growth and stagnant fuel demand depress margins. One trader dealing in Iranian oil said a teapot operator seemed unfazed by Thursday's announcement. "Our regular client appeared nonchalant when I shared the sanction document translated into Chinese late last night and carried on asking for the latest Iranian oil quotes," the trader said. Sign in to access your portfolio
Zawya
21-03-2025
- Business
- Zawya
New US sanctions to slow but not stop China's Iranian oil imports, traders say
Iranian oil shipments into China are set to fall in the near-term after new U.S. sanctions on a refiner and tankers, driving up shipping costs, but traders said they expect buyers to find workarounds to keep at least some volumes flowing. Washington on Thursday imposed new sanctions on entities including Shouguang Luqing Petrochemical, a "teapot," or independent refinery in east China's Shandong province, and vessels that supplied oil to such plants in China, the top buyers of Iranian crude. It was the fourth round of sanctions on Iran's oil sales since President Donald Trump's February call for "maximum pressure" on Tehran, including efforts to drive its crude exports to zero. Iranian oil flows to China had already dropped due to rising freight costs as earlier sanctions hit shipping capacity, said traders, including three directly involved in the business. A Chinese trading executive involved in Iranian oil business said the latest sanctions did not come as a surprise and expects that more plants or terminals could be targeted. "But once companies re-adjust their business structures, imports would continue," said the executive, referring to measures such as changing entities for oil payments. Still, imports may be curbed as the sanctions give larger private refiners pause, said a second Chinese trader. Freight costs for a Very Large Crude Carrier, or VLCC, sailing from waters near Malaysia, a key transshipment point for Iranian oil, to China's refining hub Shandong have more than doubled since late 2024 to $3-$4 per barrel, the first executive added. China's Iranian oil imports recovered in February to 1.43 million bpd, from 898,000 bpd in January, data from analytics firm Kpler showed. About 33 million barrels have been delivered this month, with volumes forecast to reach 1.7 million bpd before the latest sanctions, senior Kpler analyst Muyu Xu said, adding that discharge volumes for the rest of March could decline sharply due to the sanctions. Most Iranian oil shipments to China, which make up over 10% of its crude imports, are rebranded by traders as sourced from Malaysia. "This marks a clear escalation in sanctions policy, though not as severe as if a Chinese port had been designated," said Brian Leisen, commodities strategist at RBC Capital. 'INDISCRIMINATE AND ILLEGAL' China, which defends its trade with Iran as legitimate, on Friday reiterated its opposition to "indiscriminate and illegal" unilateral sanctions and pledged to protect the rights of Chinese enterprises, which one trader said buyers would take comfort from. Luqing, which operates a 160,000 bpd refinery, is among the larger regular buyers of discounted Iranian oil, according to traders. It is the second teapot sanctioned by the U.S. after Haiyou Petrochemical was designated in 2022. A person answering the phone at Luqing did not have immediate comment on Friday. The company did not immediately respond to an email seeking comment. Oil from Iran, Venezuela and Russia shunned by many Western buyers has saved Chinese refineries billions of dollars in recent years as flagging economic growth and stagnant fuel demand depress margins. One trader dealing in Iranian oil said a teapot operator seemed unfazed by Thursday's announcement. "Our regular client appeared nonchalant when I shared the sanction document translated into Chinese late last night and carried on asking for the latest Iranian oil quotes," the trader said. (Reporting by Chen Aizhu and Florence Tan Editing by Tony Munroe, William Maclean)
Reuters
21-03-2025
- Business
- Reuters
New US sanctions to slow but not stop China's Iranian oil imports, traders say
SINGAPORE, March 21 (Reuters) - Iranian oil shipments into China are set to fall in the near-term after new U.S. sanctions on a refiner and tankers, driving up shipping costs, but traders said they expect buyers to find workarounds to keep at least some volumes flowing. Washington on Thursday imposed new sanctions on entities including Shouguang Luqing Petrochemical, a "teapot," or independent refinery in east China's Shandong province, and vessels that supplied oil to such plants in China, the top buyers of Iranian crude. It was the fourth round of sanctions on Iran's oil sales since President Donald Trump's February call for "maximum pressure" on Tehran, including efforts to drive its crude exports to zero. Iranian oil flows to China had already dropped due to rising freight costs as earlier sanctions hit shipping capacity, said traders, including three directly involved in the business. A Chinese trading executive involved in Iranian oil business said the latest sanctions did not come as a surprise and expects that more plants or terminals could be targeted. "But once companies re-adjust their business structures, imports would continue," said the executive, referring to measures such as changing entities for oil payments. Still, imports may be curbed as the sanctions give larger private refiners pause, said a second Chinese trader. Freight costs for a Very Large Crude Carrier, or VLCC, sailing from waters near Malaysia, a key transshipment point for Iranian oil, to China's refining hub Shandong have more than doubled since late 2024 to $3-$4 per barrel, the first executive added. China's Iranian oil imports recovered in February to 1.43 million bpd, from 898,000 bpd in January, data from analytics firm Kpler showed. About 33 million barrels have been delivered this month, with volumes forecast to reach 1.7 million bpd before the latest sanctions, senior Kpler analyst Muyu Xu said, adding that discharge volumes for the rest of March could decline sharply due to the sanctions. Most Iranian oil shipments to China, which make up over 10% of its crude imports, are rebranded by traders as sourced from Malaysia. "This marks a clear escalation in sanctions policy, though not as severe as if a Chinese port had been designated," said Brian Leisen, commodities strategist at RBC Capital. 'INDISCRIMINATE AND ILLEGAL' China, which defends its trade with Iran as legitimate, on Friday reiterated its opposition to "indiscriminate and illegal" unilateral sanctions and pledged to protect the rights of Chinese enterprises, which one trader said buyers would take comfort from. Luqing, which operates a 160,000 bpd refinery, is among the larger regular buyers of discounted Iranian oil, according to traders. It is the second teapot sanctioned by the U.S. after Haiyou Petrochemical was designated in 2022. A person answering the phone at Luqing did not have immediate comment on Friday. The company did not immediately respond to an email seeking comment. Oil from Iran, Venezuela and Russia shunned by many Western buyers has saved Chinese refineries billions of dollars in recent years as flagging economic growth and stagnant fuel demand depress margins. One trader dealing in Iranian oil said a teapot operator seemed unfazed by Thursday's announcement. "Our regular client appeared nonchalant when I shared the sanction document translated into Chinese late last night and carried on asking for the latest Iranian oil quotes," the trader said.
