India Expects Safe Passage for Stranded Ships After LNG Carrier Disha Transits Strait of Hormuz

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NEW DELHI: The safe transit of India-bound LNG carrier Disha through the Strait of Hormuz Monday has raised expectations for safe and swift passage of another 34 Indian- and foreign-flagged ships, stranded in the Persian Gulf, to sail to Indian ports, as the US and Iran have announced a decision to sign a peace deal. While the expected sailing of 16 of these ships loaded with fertiliser will help augment supply of the key soil nutrient, policymakers are keeping fingers crossed as improvement in energy supplies may not immediately translate into relief due to extensive damage to facilities, such as Ras Laffan in Qatar.

Damage to facilities may not allow immediate energy relief

Better energy supplies may not bring immediate relief because extensive damage to facilities has created uncertainty over when normal operations will resume. India has a long-term gas supply contract with QatarEnergy’s Ras Laffan facility. UAE’s Habshan Gas Plant was also damaged, disrupting operations. Officials said 60% of the plant’s capacity has been restored. They expect recovery to reach 80% by the end of 2026 and full structural restoration in 2027. According to officials, two liquefied natural gas (LNG) trains — processing units — at state-owned QatarEnergy’s Ras Laffan facility were damaged, wiping out roughly 17% of its capacity.

State of affairs

Before the conflict, India imported more than 88% of its crude oil requirement, with nearly half coming from West Asia. More than 60% of its imported LNG also passed through the Strait of Hormuz. India sourced nearly 60% of its LPG requirements from West Asia with about 90% of these supplies transiting through Hormuz. TOI has learnt that 15 ships are carrying crude, LNG and LPG, while the remaining three carry other cargo. Briefing reporters on the recent developments in West Asia, Opesh Kumar Sharma, director in shipping ministry said, “LNG carrier Disha has safely transited the Strait of Hormuz, and she is carrying 62,370 tonnes of LNG cargo. The vessel is supposed to enter Dahej, likely on June 18.” Bandana Preyashi, joint secretary in the fertiliser department, said that out of the 16 ships in the crucial strait, eight are carrying urea, four diammonium phosphate (DAP), three sulphur and one ammonia.