Tanker carrying Iranian crude diverts to China after signalling India

A US-sanctioned tanker carrying Iranian crude has changed its declared destination mid-voyage, shifting away from India to China, according to ship-tracking data, casting uncertainty over what could have been India’s first such import in nearly seven years.

The Aframax vessel Ping Shun, built in 2002 and sanctioned by the US in 2025, is now signalling Dongying in China with 6 lakh barrels of Iranian oil. Earlier this week, the tanker had listed Vadinar in Gujarat as its intended destination, Kpler data showed.

Read Full StoryThe development came even as Indian refiners have been exploring opportunities to procure Iranian oil cargoes at sea, following a recent sanctions waiver issued by Washington.

If the shipment had reached India, it would have marked the country’s first import of Iranian crude since 2019, when purchases were halted after tighter US sanctions came into force.

According to Sumit Ritolia, Lead Research Analyst (Refining and Modelling) at Kpler, the vessel had been en route to Vadinar for the past three days before dropping India as its declared destination near arrival and switching its signal to China.

He indicated that the change in route appears to be linked to payment-related concerns. Sellers, Ritolia said, are tightening terms, moving away from the earlier 30–60 day credit window and increasingly seeking upfront or near-term settlement.

The identities of the buyer and seller involved in the cargo remained unclear.

However, the destination reflected on a ship’s Automatic Identification System (AIS), a mandatory tracking system for most commercial vessels, is not definitive and can be altered at any stage of the voyage.

Vadinar, the port initially indicated, houses a 20-million-tonne-per-year refinery operated by Rosneft-backed Nayara Energy.

Ritolia noted that while such mid-voyage changes are not uncommon in Iranian crude shipments, they highlight the growing sensitivity of these trades to financial terms and counterparty risks.

He added that if payment-related issues are resolved, the cargo could still be redirected to an Indian refinery. At the same time, the episode underscores how commercial conditions are becoming as crucial as logistical factors in determining the flow of Iranian crude to destinations beyond China.

India’s oil ministry has maintained that any decision on resuming imports from Iran will be guided by techno-commercial feasibility.

Before sanctions tightened in 2018, India was among the largest buyers of Iranian oil, importing both light and heavy grades due to favourable pricing and compatibility with domestic refineries.

Iranian crude once accounted for 11.5 per cent of India’s total imports. The country imported 518,000 barrels per day in 2018, which declined to 268,000 bpd between January and May 2019 during a limited US waiver period. Imports have not resumed since then.

Following the halt in May 2019, India replaced Iranian volumes with supplies from the Middle East, the United States and other producers.

The key grades previously sourced by Indian refiners were Iran Light and Iran Heavy.

Last month, the US granted a 30-day waiver allowing purchases of Iranian oil at sea, in an effort to ease oil prices amid the US-Israel war involving Iran. The window is set to expire on April 19.

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