Mangalore Refinery and Petrochemicals has shut a crude unit and some secondary units at its 300,000-barrel-per-day refinery due to oil shortage.
According to a report by Reuters, the impacted crude unit has a capacity of 100,000-barrel-per-day. A hydrocracker has also been shut down since Wednesday evening, the report adds.
The development comes amid stalled crude supplies from the Middle East due to the US-Israel-Iran war since last week.
Though Washington assured on Wednesday that it would stabilise oil shipments through the Persian Gulf, uncertainty around oil supplies is running high.
The shutting of MRPL’s refinery is a culmination of various stop-gap measures taken by Indian oil companies to minimise the impact of the war on global energy trade.
Earlier in the week, companies like Petronet LNG informed gas marketing companies that it will be limiting the supply to industries. Petronet is India’s largest gas importer.
India is the top LNG client for Abu Dhabi National Oil Company and the second-largest buyer of Qatari LNG.
MRPL itself had decided to suspend crude exports, declaring force majeure on all upcoming gasoline export cargoes for March and April. The company used to export about 40 percent of its production.
Asia is largely dependent on imports to meet its energy needs and a significant amount of it comes from the Middle East.
Chinese oil refining companies have been directed by their government not to export diesel and petrol as war in the West Asian region continues with little signs of resolution in the near future.
Since the start of the US-Israel-Iran war, oil shipments through the Strait of Hormuz have stopped. The narrow water passage between Oman and Iran caters to almost 20 percent of global oil shipments.
Facing attacks from the Israel-US duo, Iran has threatened to destroy tankers passing through the Strait.
India is looking to import Russian crude, which it stopped after announcing the trade deal with the US.
