India Boosts Domestic LPG Production Amid Gulf Supply Uncertainty
India's LPG production has increased as the country prepares for higher demand during the festive season, which is expected to boost household consumption. However, overall LPG demand is still around 10% lower than last year due to ongoing disruptions in industrial demand caused by the conflict in the Persian Gulf.
The government has reduced the minimum refill waiting period for rural areas from 45 days to 25 days, improving LPG availability. Despite this, supply risks persist, with ADNOC indicating that it may not be able to meet committed volumes for some Indian companies. In fact, a September cargo for Bharat Petroleum Corp. and two cargoes for Indian Oil Corp. could not be collected.
ADNOC has assured its commitment to meeting customers' needs and supporting India's energy security, saying that it plans to supply committed October volumes. However, this has raised concerns about the country's reliance on Gulf supplies, which are uncertain due to ongoing conflict and trade upheaval in the region.