Mangalore Refinery and Petrochemicals Limited (MRPL) is importing crude from Iran, enabled by a U.S. exemption to India. However, it is watching the environment influencing the relationship.
P. P. Upadhya, Chairman and Managing Director (CMD), MRPL, told The Hindu that “We got waiver for our imports. We did not seek [a waiver]. But U.S., as per its policy (which is), whoever has made a significant reduction in their offtake (of lifting crude from Iran), has given exemption to India (along with six to seven other countries).”
Imports
MRPL now imports one lakh barrels per day (bpd) against the earlier 1.42 lakh bpd, a change made this year, he said. Iran accounts for 40 per cent of the 12.8 million tonnes per annum crude MRPL requires. (Another 1.8 million tonnes is from a domestic source, Bombay High).
Crude from Saudi
It also bought crude this July from Saudi Arabia, a quantity “marginally higher from Saudia Arabia, in the unlikely event of [supplies from] Iran getting stopped,” he said. Though MRPL did not desire it, compulsions are mounting everyday with the environment,” said Mr. Upadhya.
Insurance
MRPL is concerned over the withdrawal of insurance cover by Europe-based groups to vessels carrying crude for the company.
“So far, we have overcome, I was in Teheran in June, things appear good...other pressures are there… U.S. sanctions on Iran,” he said.
One factor related to MRPL’s imports of Iranian crude during the monsoons is that the New Mangalore Port cannot receive vessels beyond 85,000 tonnes capacity.
SPM
The single point mooring system (SPM) that can receive very large crude carriers (VLCCs), is ‘practically ready but yet to be commissioned’.
“Iran is sending crude in vessels of 1.30 lakh tonnes, which cannot come to the jetty, therefore, SPM is important. If SPM comes up, we can take it,” he said.
