New Delhi: A US-sanctioned tanker carrying Iranian crude oil has altered its course mid-voyage, shifting its destination from India—where it would have marked the first such shipment in nearly seven years—to China.
Tanker changes course mid-voyage
The Aframax tanker Ping Shun, built in 2002 and sanctioned by the US in 2025, is now signalling Dongying in China instead of Vadinar in Gujarat, which it had listed earlier this week, according to ship-tracking firm Kpler.
There is no confirmation that the destination indicated through the ship’s Automatic Identification System (AIS)—a mandatory tracking mechanism for most commercial vessels—is final, as such signals can change during transit.
“An Iranian crude vessel ‘Ping Shun’ that had been en route to Vadinar, India, over the past three days has dropped India as its declared destination near arrival and is now signalling China,” said Sumit Ritolia, Lead Research Analyst, Refining and Modelling at Kpler.
First Iranian cargo to India since 2019 at stake
The cargo aboard Ping Shun would have been the first Iranian crude shipment to India since 2019. Indian refiners have recently been exploring opportunities to purchase limited volumes of Iranian oil currently at sea following a temporary sanctions waiver by Washington.
Ritolia suggested that the change in destination appears to be linked to payment issues, with sellers tightening terms and shifting away from earlier 30–60 day credit windows toward upfront or near-term payments.
It remains unclear who the actual buyer and seller of the crude are.
Vadinar refinery and trade sensitivities
Vadinar hosts a 20 million tonnes per year refinery operated by Nayara Energy, backed by Russian oil major Rosneft.
“While such mid-voyage destination changes are not unprecedented with Iranian crude shipments, they reflect growing sensitivity of trade flows to financial terms and counterparty risks,” Ritolia noted.
“If payment issues are resolved, the cargo could still reach an Indian refinery. However, this episode highlights that commercial terms are becoming as critical as logistics in determining Iranian crude flows outside China.”
India’s position on Iranian oil imports
India’s oil ministry has maintained that any decision to resume Iranian crude imports will be based on techno-commercial feasibility.
Historically, India was a major importer of Iranian oil, purchasing significant volumes of Iran Light and Iran Heavy grades due to refinery compatibility and favourable terms.
However, imports ceased in May 2019 following tighter US sanctions, with supplies replaced by crude from the Middle East, the US, and other sources. At its peak, Iranian oil accounted for 11.5% of India’s total imports.
India imported about 518,000 barrels per day (bpd) of Iranian oil in 2018, which declined to 268,000 bpd between January and May 2019 under US waivers. Imports have remained at zero since then.
US waiver and oil in floating storage
Last month, the US issued a 30-day waiver allowing purchases of Iranian oil stored at sea, aiming to ease global oil prices amid geopolitical tensions involving the US, Israel, and Iran. The waiver is set to expire on April 19.
Approximately 95 million barrels of Iranian oil are currently stored on vessels, of which around 51 million barrels could potentially be sold to India, while the rest are more suited for buyers in China and Southeast Asia.
The Ping Shun is estimated to be carrying about 600,000 barrels of crude loaded from Kharg Island around March 4. Its earlier estimated time of arrival at Vadinar was April 4.
Payment challenges and SWIFT restrictions
Despite the waiver, uncertainty remains over payment mechanisms, as Iran continues to be excluded from the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system.
Previously, payments for Iranian oil were routed in euros through a Turkish intermediary bank, but that option is no longer available.
Iran was first disconnected from SWIFT in March 2012 following European Union sanctions related to its nuclear programme, cutting off several Iranian banks and severely restricting international transactions.
Further restrictions were imposed in 2018 after the US reinstated sanctions, again limiting Iran’s access to global financial systems, oil revenues, and foreign exchange reserves.
Follow on Twitter | Posted by P N Sree Harsha | 
