State-run oil marketing companies (OMCs) are increasing their liquefied petroleum gas (LPG) purchases from the US by adding more spot cargoes, amid continued uncertainty over supplies of the cooking and heating fuel from the Middle East Gulf (MEG) region.
Sources said that PSU OMCs are procuring spot LPG cargoes from the US. This is being done to meet supply shortfalls due to the West Asia conflict.
“OMCs already have a long-term contract with the US. As MEG supplies remain uncertain, they have turned to the US,” said one of the sources.
India has already increased its LPG sources from 10 to 15. Last month, the Oil Ministry said that 800,000 tonnes of assured inbound LPG cargoes have been secured and are en route from the US, Russia, Australia, and other countries.
On US spot LPG cargoes, Sujata Sharma, Joint Secretary at the Ministry of Petroleum & Natural Gas (MoPNG), said, “We will buy LPG from wherever it is available.”
Despite repeated efforts to normalise transit conditions through the Strait of Hormuz (SoH), MEG LPG exports have remained largely subdued at 150,000 barrels per day (b/d) in April (days 1-21). Saudi Arabia LPG exports via Yanbu are unchanged m-o-m at around 110,000 b/d, constraining the upside for the region’s VLGC utilisation, Vortexa said.
The market intelligence firm, in its monthly LPG report for April, said that global LPG exports recovered after falling more than 1 million b/d (mb/d) since early March. The US Gulf Coast LPG exports are at near-record levels at around 2.4 mb/d.
“Global LPG exports show signs of recovery with April volumes surpassing the 5-year seasonal average on a near-record US sendout (exports). Propane exports show more resilience, while butane balances continue to remain tight with emerging markets competing (South East Asia, India, etc) for less-common, but growing US butane cargoes,” Vortexa added.
S&P Global Energy CERA last month said that India is increasingly turning to the US for LPG as geopolitical tensions reshape global trade flows. If the Middle Eastern conflict continues for a long period, there is a chance for North American LPG to gain a stronger foothold in the Indian import mix.
India’s weekly LPG imports fell to 265,000 tonnes in the week to March 19, from 322,000 tonnes on March 5. West Asian inflows to India declined to just 89,000 tonnes in the week to March 19, representing only 34 per cent of total imports, the lowest share since January. Alternative regional supplies increased to 176,000 tonnes in the week to March 19, up from zero the previous week when the Middle East accounted for 100 per cent of imports, as per S&P Global Commodities at Sea.
Published on April 24, 2026