India Turns to US for Cooking Gas as LPG Imports Surge Amid Middle East Disruptions
India’s liquefied petroleum gas (LPG) imports from the United States are projected to exceed 1 million metric tonnes in June, marking a historic first. This surge follows disruptions in LPG supplies from the Middle East and the Strait of Hormuz, prompting New Delhi to seek more expensive alternatives. According to Reuters, India is expected to import between 1.1 million and 1.2 million tonnes of US LPG this month, reflecting a significant shift in its sourcing strategy for cooking fuel.
Shifts in Sourcing Patterns
Prior to the recent geopolitical tensions, India relied on Middle Eastern producers for approximately 90% of its LPG imports, which typically average around 2 million tonnes monthly. However, following the disruptions, LPG imports plummeted to 696,000 tonnes in April. Supplies rebounded to 1.15 million tonnes in May as refiners increased purchases from alternative sources. India had already aimed to boost US LPG purchases to about 10% of its total imports to strengthen trade ties with Washington, but the current uncertainty has accelerated these spot purchases.
Despite the higher costs associated with US LPG, Indian refiners have procured unprecedented volumes to ensure a steady supply of cooking gas to households. To address supply concerns, the Indian government has urged refiners to maximize LPG production, prioritize household sales, and expedite the expansion of piped natural gas connections. These measures could potentially reduce LPG consumption by 15% to 20%.
Recovery of Middle Eastern Supplies
While US shipments have surged, traditional Middle Eastern suppliers are gradually recovering. In June, India is expected to receive between 300,000 and 400,000 tonnes of LPG from the United Arab Emirates, with cargoes reportedly offered at premiums of about $100 per tonne above Saudi Contract Prices. Additionally, around 45,000 tonnes of LPG from Kuwait is anticipated this month.
Data from energy intelligence firm Kpler indicates that India imported 648,300 tonnes of LPG from the United States in May, compared to 134,700 tonnes from the UAE. Imports from Iran reached 145,000 tonnes, while shipments from Saudi Arabia, Oman, and Qatar remained limited. Preliminary data for June shows India is set to import approximately 1.07 million tonnes from the US, alongside 223,800 tonnes from the UAE, 116,200 tonnes from Iran, and 108,600 tonnes from Kuwait. Additional cargoes are expected from Oman, Saudi Arabia, Algeria, Qatar, and Nigeria. The partial reopening of the Strait of Hormuz may further enhance Middle Eastern LPG supplies in the coming months.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
