A US-sanctioned tanker carrying Iranian crude oil has changed course mid voyage, dropping India as its destination and now heading towards China. The Aframax tanker Ping Shun, built in 2002 and sanctioned by the US in 2025, is currently 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 shown by the vessel’s Automatic Identification System, a tracking mechanism required on most commercial ships, will remain final, as it can be altered at any point during transit.
“An Iranian crude vessel, Ping Shun, which had been en route to Vadinar in Gujaratย over the past 3 days, has dropped India as its declared destination near arrival and is now signalling China,”ย said Sumit Ritolia, lead research analyst, refining and modelling at Kpler.
The shipment would have marked Indiaโs first purchase of Iranian crude since 2019. Indian refiners had been exploring opportunities to procure limited cargoes of Iranian oil at sea following a recent sanctions waiver by Washington.
Reason for diversion to China
Ritolia said the diversion appears to be linked to payment terms, with sellers tightening conditions and moving away from earlier 30 to 60-day credit windows towards upfront or near-term payments.
The identities of the buyer and seller remain unclear.
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 uncommon in Iranian crude trade, they reflect growing sensitivity to financial terms and counterparty risk,โ Ritolia said.
“If payment issues are resolved, the cargo could still reach an Indian refinery. However, this episode highlights how commercial terms are becoming as important as logistics in determining Iranian crude flows beyond China.”
Indiaโs oil ministry has maintained that any decision to resume Iranian crude imports will depend on techno commercial viability.
India was once a major importer of Iranian oil, drawn by refinery compatibility and favourable terms. Imports stopped in May 2019 after tighter US sanctions, with supplies replaced by Middle Eastern, US and other sources.
At its peak, Iranian crude made up 11.5 per cent of Indiaโs total imports. India imported about 518,000 barrels per day in 2018, which declined to 268,000 barrels per day between January and May 2019 during a US waiver period.
There have been no imports since.
Indian refiners typically purchased Iran Light and Iran Heavy crude grades.
Last month, the US granted a 30 day waiver allowing the purchase of Iranian oil at sea, aiming to ease global oil prices amid tensions linked to the US Israeli conflict with Iran. The waiver is set to expire on April 19.