The US and Iran become India's largest Liquefied Petroleum Gas (LPG) supplier, together accounting up to two-third of the total imports of India overtaking Gulf producers such as UAE, Qatar, Saudi Arabia and Kuwait.
The conflict in West Asia has reshaped India's energy imports basket, resuming Iran-India trade after 7 years. India imported 12 percent of LPG from Iran and 55 percent from the US in May, making US and Iran, India's key LPG suppliers.
The US was not the primary exporter of LPG before the closure of the Strait of Hurmoz. The supplies started January However, The annual purchase of deals between US suppliers and Indian state refiners was signed last year. Yet, LPG supplies doubled to 666,000 tonnes in May compared to February’s level.
“As the world’s largest LPG producer and exporter, the US is emerging as an alternative supplier for Indian buyers during this period of uncertainty. Unless supply conditions in west asia normalise, US LPG is likely to remain a key source for incremental supply for India, with import volumes expected to stay strong in the near term,” ET reported Nikhil Dubey, Lead Analyst-Refining, Kpler as saying.
The ongoing conflict between the two countries has disrupted the global energy flows, making opportunities for passive energy suppliers, Australia, Congo, Nigeria, Angola and Cameron all shipped small volumes of LPG to India.
