Indian refiner cancels Iran oil imports

Indian refiner cancels Iran oil imports
Indian refiner cancels Iran oil imports

India′s Chennai Petroleum will stop processing Iranian crude oil from October to keep its insurance coverage once new sanctions by the United States against Iran go into effect. Iran′s Naftiran Intertrade Co Ltd, a trading arm for state-owned National Iranian Oil Co, owns a 15.4 per cent stake in Chennai Petroleum, which has two refineries with a total combined capacity of 230,000 barrels of oil per day (bpd). In May, US President Donald Trump pulled out of an international nuclear deal with Iran and announced new sanctions against the country, the third-largest producer among the Organisation of the Petroleum Exporting Countries (OPEC). United India Insurance has informed Chennai Petroleum that its new annual policy that is set to take effect from October will not cover any liability related to processing crude from Iran. This has forced the refiner to cancel a scheduled loading of 1 million barrels in October. Chennai Petroleum′s reduced demand will further cut India′s imports from Iran to about 10 million tonnes in October. Chennai Petroleum, a subsidiary of the country′s biggest refiner Indian Oil Corp (IOC), has a deal to buy up to 2 million tonnes, or 40,000 bpd, of oil from Iran in the fiscal year 2018-19.

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