India seeks to diversify LPG imports from US amid Gulf supply risks

India is actively diversifying its liquefied petroleum gas (LPG) import sources to reduce reliance on the Persian Gulf amid regional instability. State-owned refiners may issue a tender this month to seek term supplies from the United States, potentially covering up to 20% of India’s LPG imports next year.

While the Persian Gulf remains a primary source, recent supply disruptions have highlighted vulnerabilities. Specifically, certain cargoes from Abu Dhabi National Oil Co. (ADNOC) intended for Bharat Petroleum Corp. and Indian Oil Corp. could not be collected in September. ADNOC has stated it remains committed to meeting its October volume obligations for Indian customers.

To mitigate risks, India has also increased domestic LPG production, which has risen to approximately 44,000 tonnes per day. In some rural regions of India, such as Uttar Pradesh, certain distributors have been observed selling 19-kg commercial cylinders at discounted rates due to excess stock and lower local demand, though official domestic cylinder prices remain unchanged.