A petroleum tanker is diverting from loading at Nayara Energy’s refinery in India due to the recent sanctions imposed by the European Union. This decision marks the second instance of a ship changing its plans following the sanctions. The vessel, Chang Hang Xing Yun, is now expected to load ultra-low sulphur diesel from Kuwait before heading to East Africa. Originally set to load at Nayara Energy’s port, the ship was chartered by PetroChina and scheduled to transport the cargo to either Southeast Asia or Chittagong in Bangladesh. However, the ship is currently positioned off the west coast of India.
Another tanker, Talara, chartered by BP, recently bypassed loading at Nayara’s Vadinar port. Additionally, Nayara Energy did not secure any naphtha export deals after revising its payment terms. State refiners in India are steering clear of Nayara’s products, citing sufficient local supply. They have also expressed intention to seek governmental approval before engaging in future fuel purchases from Nayara. The refiners highlighted that Nayara would need to offer substantial discounts to attract buyers.
In response to the sanctions, Nayara Energy rebuked the EU’s decision, deeming it “unjust and unilateral.” There is a concern that the sanctions may not only impact jet imports into Europe but could also affect credit lines necessary for crude supply into Vadinar. Energy Aspects analysts warned that the new EU sanctions endanger substantial amounts of ultra-low sulphur diesel and jet fuel imports into Europe. These sanctions are expected to drive operational challenges for refineries in India and Turkey, as they rely on processing Russian crude.
The recent sanctions have prompted a cautious approach from stakeholders, with state refiners in India opting to avoid trading with Nayara Energy and necessitating substantial discounts for any potential deals. Nayara is facing operational hurdles as it seeks to navigate the impact of these sanctions on its business model.
By: Trixie Yap and Nidhi Verma
07/23/2025
