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US Becomes India’s Main LPG Supplier as West Asia Falters
A conflict in West Asia disrupted ships carrying cooking gas to India.
Much of India’s LPG normally comes from Gulf countries through the Strait of Hormuz.
When that route became difficult to use, India received much less LPG from those countries.
India then bought far more LPG from the United States.
US shipments made up 53% of India’s imports during the six months to August.
Overall LPG imports still fell because the missing Gulf supplies were not fully replaced.
India increased production at its own refineries to help.
It also limited some supplies for businesses so households could continue receiving cooking gas.
Experts expect US supplies to remain important until West Asian shipments recover.
The United States supplied 53% of India’s LPG imports during March-August, up from 7.9% in the previous six months.
India’s total LPG imports fell 43.1% sequentially to 7.14 million tonnes as supplies through the Strait of Hormuz were disrupted.
Imports from the United States nearly quadrupled to 3.78 million tonnes, while imports from Gulf suppliers declined sharply.
The United Arab Emirates’ share fell from 37.8% to 13.4%, while Qatar, Kuwait, and Saudi Arabia also recorded steep volume declines.
India increased domestic LPG production and sought alternative cargoes, but supply constraints led to rationing for industrial and commercial users.
- Who
- India, the United States, and Gulf LPG suppliers including the United Arab Emirates, Qatar, Kuwait, and Saudi Arabia.
- What
- India shifted sharply toward US LPG imports after supplies from West Asia were disrupted.
- Where
- India’s LPG market, with supply routes affected around the Strait of Hormuz.
- When
- During the six months from March through August, following the conflict that began in late February.
- Why
- Conflict-related disruption to shipping through the Strait of Hormuz reduced Gulf LPG supplies and forced India to seek alternative sources.
Key facts
- US share of imports
- 53% during March-August, compared with 7.9% during September-February.
- US import volume
- 3.78 million tonnes during March-August, up 281.1% sequentially.
- Total LPG imports
- 7.14 million tonnes during March-August, down 43.1% from the previous six months.
- India’s LPG import dependency
- About 60%.
- India’s LPG consumption
- Normally a little over 33 million tonnes annually, or about 90,000 tonnes per day.
- Consumption during disruption
- About 80,000 tonnes per day, according to estimates shared in May.
- Household connections
- More than 33 crore households in India have LPG connections.
Quotes
Natalia Katona
Abu Dhabi-based energy analyst
“This growth (in LPG imports from the US) is particularly due to the constrained supply from the Middle East. US is a major LPG supplier globally and became a readily available option for India. This LPG is accessible in this constrained supply environment. This is similar to Russian (oil) barrels flocking to India (amid the West Asia supply disruption).”
indianexpress.com
“Washington has been the biggest LPG exporter worldwide even before the crisis, and US propane was already cheaper than Asian supplies before the war.”
indianexpress.com
Sources
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