India prepares for a record LPG import surge from the United States in June. Industry sources indicate volumes may exceed 1 million metric tons. Additionally, this marks a new milestone in bilateral energy trade between both nations. Consequently, India’s dependency pattern in LPG sourcing shows a major shift.
Middle East disruptions force India toward higher-cost US supply
Earlier supply disruptions in the Middle East pushed India toward US LPG purchases. Moreover, tensions involving Iran and concerns around the Hormuz Strait created uncertainty. Historically, India sourced nearly 90 percent LPG from Middle Eastern producers. Therefore, supply instability forced diversification toward alternative global suppliers.
Import fluctuations show sharp volatility in recent months
Government data shows LPG imports dropped to 696,000 tons in April. However, May recorded a sharp rebound reaching 1.15 million tons. Additionally, India earlier planned to raise US LPG share to around 10 percent. Consequently, market volatility pushed urgent spot purchases at premium prices.
Global suppliers adjust shipments as India diversifies sourcing
US shipments to India may reach 1.1 to 1.2 million tons in June. Meanwhile, UAE supply improves significantly, touching 300,000 to 400,000 tons. Additionally, Kuwait contributes nearly 45,000 tons during the same period. Consequently, multiple suppliers expand participation in India’s LPG basket.
Kpler data highlights shifting global LPG trade flows
Kpler data shows May imports included 648,300 tons from the US. Additionally, UAE contributed 134,700 tons during the same month. Meanwhile, Iran supplied 145,000 tons through smaller independent companies. Consequently, projections indicate continued diversification across global LPG sources in June.
