India Turns to US for LPG and LNG as West Asia Crisis Hits Gulf Supplies

India has significantly increased its imports of liquefied petroleum gas (LPG) and liquefied natural gas (LNG) from the United States due to disruptions in West Asia, according to maritime intelligence firm Kpler. The country imported about 0.62 million tonnes of LPG from the US in August, accounting for over 73% of its total LPG imports.

The US supplied almost equal volumes of LPG as India's traditional supplier, the UAE, which imported around 140,000 tonnes in August. LNG imports from Qatar fell to zero in April, while US supplies rose to about 0.75 million tonnes in August.

Sumit Ritolia, senior manager - modelling at Kpler, noted that the shift towards the US has been driven by constrained Middle Eastern availability and India's need for supply diversification. He added that energy trade flows do not adjust immediately to geopolitical developments due to contractual commitments and procurement lead times.

The increased reliance on more distant suppliers is raising India's import costs, with tighter global availability contributing to higher prices. Ritolia stated that the increase in India's LNG or LPG import bill reflects a combination of higher international prices, freight and insurance costs, and longer supply routes.