India Shifts to US for LPG and LNG Amid West Asia Supply Disruptions

India has significantly increased its imports of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from the United States as supply disruptions linked to the conflict in West Asia have constrained supplies from traditional Gulf suppliers, according to data from maritime intelligence firm Kpler.

In August, India imported about 0.62 million tonnes of LPG from the US, accounting for more than 73 per cent of the country's LPG imports, while LNG imports from Qatar fell to zero in April and the US supplied around 0.75 million tonnes in August.

Sumit Ritolia, senior manager - modelling at Kpler, said that the shift towards the US has been driven by constrained Middle Eastern availability and the need for Indian buyers to diversify and secure replacement cargoes, rather than a deliberate effort to replace Middle Eastern supplies with US volumes.

The increased reliance on more distant suppliers is also raising India's import costs, but Ritolia noted that this reflects a combination of higher international prices, tighter Middle Eastern availability, freight and insurance costs, and longer supply routes.