1 day ago
India's LPG Imports Shift as Gulf Disruptions Spur US Supplies
India buys much of its cooking gas from suppliers around the Persian Gulf.
Recent delivery problems have made that supply route less certain.
To reduce the risk, Indian refiners may buy more LPG from the United States.
The possible US purchases could cover as much as one-fifth of India's imports next year.
India is also producing more LPG at home.
This extra production is helping during the busy festive season.
ADNOC said it remains committed to delivering its October supplies.
The changes could make India's LPG supply network more varied in the future.
Indian refiners may seek US LPG supplies covering up to 20% of next year's imports.
The proposed purchases would expand the US role and reduce reliance on Persian Gulf routes.
India's domestic LPG output has risen to about 44,000 tonnes a day, nearly 20% above August's average.
One September cargo for Bharat Petroleum and two for Indian Oil from ADNOC could not be collected.
ADNOC said it would supply its committed October volumes as India approaches peak festive and winter demand.
- Who
- Indian state-owned refiners, US suppliers, Persian Gulf suppliers, and Abu Dhabi National Oil Company are involved.
- What
- India is considering increasing US LPG purchases after disruptions affected some Gulf cargoes.
- Where
- The supply routes involve India, the United States, and the Persian Gulf, including Abu Dhabi.
- When
- The possible tender could be issued this month; demand is expected to stay high through Diwali in November and into winter.
- Why
- India wants to reduce dependence on Middle Eastern suppliers and improve energy security amid supply disruptions and elevated demand.
Diversification advocates
Gulf supply reassurance
Future LPG sourcing
Diversification advocates
Indian refiners may secure substantial US term supplies to reduce exposure to Persian Gulf disruptions.
Gulf supply reassurance
Abu Dhabi National Oil Company says it remains committed to meeting Indian customers' needs and supporting energy security.
Reliability of Gulf routes
Diversification advocates
The inability to collect three September cargoes highlights the vulnerability of relying heavily on the Persian Gulf.
Gulf supply reassurance
Abu Dhabi National Oil Company says it continues to provide reliable and secure LPG supplies and will deliver its committed October volumes.
Key facts
- Potential US supply share
- Up to 20% of India's LPG imports next year
- India's LPG production
- About 44,000 tonnes per day
- Production increase
- Nearly 20% above August's average
- Affected September cargoes
- One for Bharat Petroleum and two for Indian Oil could not be collected
- Committed October cargoes
- Five for Indian Oil, three for Bharat Petroleum, and three for Hindustan Petroleum
- Demand outlook
- Elevated through Diwali in November, with winter demand potentially adding pressure
Quotes
ADNOC spokesperson
Spokesperson for Abu Dhabi National Oil Co., an LPG supplier to India
“As India’s largest LPG supplier, ADNOC remains fully committed to meeting our customers’ needs and supporting India’s energy security”
businesstoday.in
Sources
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