India state refiners increase LPG output amid supply risks

Indian state-owned refiners increased liquefied petroleum gas (LPG) production in September, averaging approximately 44,000 tons per day. This represents a nearly 20% increase compared to the August average. The production boost comes as the country prepares for seasonal demand during the festive season and faces supply risks due to disruptions at the Strait of Hormuz, a route through which 90% of India's LPG imports previously passed.

To mitigate risks, India is diversifying its energy sources. While the United Arab Emirates remains the largest supplier, U.S. supplies have increased to over 20% of imports, up from 6% the previous year. India is also seeking cargoes from Norway, Canada, Algeria, and Russia.

Abu Dhabi National Oil Co. (ADNOC) has confirmed its commitment to meeting contracted volumes for Indian buyers in October, including deliveries for Indian Oil, Bharat Petroleum, and Hindustan Petroleum Corp. Despite the increased domestic production, overall demand is expected to remain roughly 10% lower than the same period last year due to weakened industrial consumption.