The impact of the US-Iran agreement has started to be seen and there is some relaxation in the restrictions imposed on Hormuz. In such a situation, 34 Indian ships stuck in Hormuz are also expected to cross Hormuz soon, which will provide relief to crores of consumers of the country.
A peace agreement has been reached between America and Iran. Under the agreement, free movement of ships will be ensured through the Strait of Hormuz. Its effect has also started becoming visible. In fact, Indian tanker Disha, carrying Liquefied Natural Gas (LNG), has safely crossed the Strait of Hormuz. 34 other ships coming to India are also expected to cross Hormuz soon. These ships are stranded in Hormuz due to the West Asia crisis.
Crores of farmers and consumers will get relief
Out of the 34 ships stranded in Hormuz, 16 are ships which are coming to India carrying fertiliser. Of these 16 ships, 8 are loaded with urea, four with di-ammonium phosphate, three with sulfur and one with ammonia. If everything remains correct under the agreement and Hormuz opens, then soon crores of farmers of India can get fertilizers for farming. However, it may take time for the situation to become normal.
No immediate relief is expected
Energy centers were targeted during the war in West Asia. Many important refineries and gas plants in West Asia have been badly damaged in the attacks. Due to which even after the war ends, it may take several months for the supply to become normal. Qatar’s Ras Laffan plant has been badly damaged in the attack and it may take several months for fuel supplies to return to normal. There is a contract to supply LPG from this gas plant in India, so it will take time for the situation to become normal.
India imports 88 percent of its crude oil needs. About half of this is supplied from West Asia only. Besides, more than 60 percent of India’s total import of LNG also comes to India via Hormuz. This is the reason why the supply of oil and gas to India was disrupted due to the closure of the Strait of Hormuz due to the West Asia crisis. Disha tanker, which has crossed Hormuz, can reach India by June 18 and is carrying 62,370 tonnes of LNG.
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