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Indian Oil to buy Iranian oil if sanctions lifted

May 25/2021

MOSCOW (MRC) -- Indian Oil Corp, the country's top refiner, said that it would resume purchases of Iranian oil if Washington lifts sanctions against Tehran over its disputed nuclear programme, reported Reuters.

The European Union official leading talks to revive Iran's nuclear deal said on Wednesday he was confident an agreement would be reached as the negotiations adjourned, although European diplomats said success was not guaranteed with very difficult issues remaining.

"We were buying Iran crude earlier before sanctions, and I don't have any doubt why we will not buy Iran crude because that favours the Indian refining system if the sanctions are lifted," S. K. Gupta, head of finance at IOC, told an analyst call.

India, the world's third largest oil consumer and importer, halted oil imports from Tehran in 2019 as a temporary waiver granted to some countries expired. Former US President Donald Trump abandoned the 2015 Iran nuclear deal in 2018 and reimposed sanctions.

US President Joe Biden's administration and Iran have engaged in indirect talks to revive the pact for Tehran to curb its nuclear activities in exchange for a lifting of sanctions.

Indian refiners are planning to replace some of their spot purchases with Iranian oil in second half of this year as the US and Iran inch closer to a deal.

"Supplies from Iran will brings additional balance to the market which helps consuming countries," said M.K. Surana, Chairman of state-run Hindustan Petroleum Corp.

He said HPCL will also consider buying Iranian oil if sanctions are lifted and hoped that Iran will continue to offer discounts on crude and shipping.

As MRC informed before, Technip Energies has been recently awarded a significant Engineering, Procurement, Construction and Commissioning (EPCC) contract by Indian Oil Corporation Limited (IOCL) for its BR9 Expansion Project in Barauni, Bihar, in the Eastern part of India. This EPCC contract covers the installation of a new Once-through Hydrocracker Unit (OHCU) of 1 million metric tonnes per annum (MMTPA) capacity, a Fuel Gas Treatment Unit (FGTU) and the associated facilities.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
Author:Margaret Volkova
Tags:PP, PE, crude and gaz condensate, PP block copolymer, homopolymer PP, propylene, LDPE, HDPE, ethylene, petrochemistry, HPCL, Indian Oil Corp, India, Iran, Russia, USA.
Category:General News
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