India Boosts Domestic LPG Supplies Amid Import Disruptions

The Indian government is taking steps to strengthen domestic LPG supplies after disruptions caused by the West Asia conflict exposed India's vulnerability to imported cooking gas. The Petroleum and Natural Gas Ministry has fixed maximum LPG production levels for 21 refineries and upstream companies, with a combined potential of 63,810 tonnes a day.

This move aims to create a domestic supply buffer after the crisis highlighted the country's dependence on imported LPG from Qatar, Saudi Arabia, the UAE, and Kuwait. To further reduce reliance on imports, India wants to secure more LPG from the US under annual contracts for 2027, with plans to raise this to 25%.

The government has also directed Indian Oil, Bharat Petroleum, and Hindustan Petroleum to source at least 15% of India's LPG imports through US term contracts. Additionally, it is promoting the adoption of piped natural gas (PNG) as a safer, cleaner, and more efficient cooking fuel that supports India's energy goals.