With the European Union gearing up to slap sanctions on Iran, Indian refineries dependent

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on crude supply from the Islamic nation has put in place an alternative plan. Mangalore Refinery and Petrochemicals (MRPL), the largest Indian buyer of Iranian crude oil importing 7.1 million tonne yearly is firming new sources other than Iran to ensure uninterrupted supply. It is also getting readied new infrastructure to berth very-large crude carriers (VLCC) in case it has to buy large cargo of crude oil from spot market.

MRPL, which had crude refining capacity of 12.64 million tonne, buys 7.1 million tonnes of crude from Iran yearly. In 2012-13, MRPL’s crude demand is expected to rise to 14.2 million tonne with increased capacity. So far the company has not signed any contract with Iran for curde oil supply for 2012-13. MRPL has present outstanding crude oil bill of $ 1.1 billion as on January 20. As of now, there are no supply disruptions; refiner’s managing director U K Basu told reporters. “We are leaving no-stone unturned (for sourcing crude from new sources). We are in talks with Latin American, African and West Asian countries. We have the capabilities of processing any crude from very light to very heavy,” Basu said.

MRPL is erecting a single point-mooring (SPM) project, which is expected to be commissioned by May 2012. This will help the refiner to get crude oil through VLCCs.

If we have to buy spot cargoes, it is better to get it more volumes at a single time; Basu said explaining the reason for getting ready to receive cargoes through VLCC.