MRPL Asks Crude Suppliers To Avoid Red Sea And Strait Of Hormuz Routes
ECONOMY & POLICY

MRPL Asks Crude Suppliers To Avoid Red Sea And Strait Of Hormuz Routes

Mangalore Refinery and Petrochemicals Ltd has asked crude suppliers to avoid transit through the Red Sea and the Strait of Hormuz in a spot import tender, the tender document showed. The tender seeks up to one million (mn) barrels of crude oil on a delivered basis with loading dates between August 25 and September 6. The instruction follows disruptions to Red Sea traffic off Yemen by Tehran?aligned Houthi actions that have aimed to blockade Saudi exports and widened tensions linked to the US?Iran confrontation.

The company included a clause instructing that crude loading and transit via the Red Sea or the Strait of Hormuz should be avoided, a caveat not previously seen in Indian spot crude tenders. The refiner had not awarded its previous tender that sought oil and did not immediately respond to requests for comment. Market participants have monitored shipping routes closely since the disruptions began last week, citing elevated risk and potential delays.

A source familiar with the matter said the refiner had taken a precautionary view to minimise the chance of supply interruption along two of the world’s main maritime oil trade routes and added that the clause would remain in future tenders if the situation in West Asia did not improve. Mangalore Refinery and Petrochemicals is a subsidiary of state?run Oil and Natural Gas Corporation and operates a 300,000 barrels per day refinery in the southern Indian state of Karnataka. The tender stipulation underscores concern among energy buyers over the security of short sea transits and the need for contingency planning.

Avoiding the Red Sea and the Strait of Hormuz typically requires rerouting shipments around the Cape of Good Hope, which extends voyage times and increases freight costs and the time crude remains in transit. In past disruptions refiners and traders have sought alternative loadings, adjusted tanker schedules and passed higher shipping charges on to buyers, influencing import timing and refinery runs. Market participants managing near?term supply arrangements will watch the development closely.

Mangalore Refinery and Petrochemicals Ltd has asked crude suppliers to avoid transit through the Red Sea and the Strait of Hormuz in a spot import tender, the tender document showed. The tender seeks up to one million (mn) barrels of crude oil on a delivered basis with loading dates between August 25 and September 6. The instruction follows disruptions to Red Sea traffic off Yemen by Tehran?aligned Houthi actions that have aimed to blockade Saudi exports and widened tensions linked to the US?Iran confrontation. The company included a clause instructing that crude loading and transit via the Red Sea or the Strait of Hormuz should be avoided, a caveat not previously seen in Indian spot crude tenders. The refiner had not awarded its previous tender that sought oil and did not immediately respond to requests for comment. Market participants have monitored shipping routes closely since the disruptions began last week, citing elevated risk and potential delays. A source familiar with the matter said the refiner had taken a precautionary view to minimise the chance of supply interruption along two of the world’s main maritime oil trade routes and added that the clause would remain in future tenders if the situation in West Asia did not improve. Mangalore Refinery and Petrochemicals is a subsidiary of state?run Oil and Natural Gas Corporation and operates a 300,000 barrels per day refinery in the southern Indian state of Karnataka. The tender stipulation underscores concern among energy buyers over the security of short sea transits and the need for contingency planning. Avoiding the Red Sea and the Strait of Hormuz typically requires rerouting shipments around the Cape of Good Hope, which extends voyage times and increases freight costs and the time crude remains in transit. In past disruptions refiners and traders have sought alternative loadings, adjusted tanker schedules and passed higher shipping charges on to buyers, influencing import timing and refinery runs. Market participants managing near?term supply arrangements will watch the development closely.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code