India's monthly LPG imports halve, domestic output falls

New Delhi: India's monthly LPG imports halved so far this month from the levels seen in February, extending a similar decline in March, showed shipping data, while domestic output fell about 10% from its March peak, tightening overall supply.

Disruptions to energy flows from the Gulf due to the Iran war continue to roil global oil and gas markets, and a week-old ceasefire has done little to ease fuel availability, particularly for cooking gas.

LPG imports averaged 37,000 tonnes per day during April 1-14, broadly in line with March but sharply lower than February's 73,000 tonnes per day, according to ship tracker Kpler.


"LPG is where the real tightness is," said Nikhil Dubey, senior research analyst at Kpler. "Supply is expected to remain constrained, with very few alternatives available in the market outside Middle East Gulf producers. We are already seeing some shifts in trade flows, but replacement options are insufficient to offset the shortfall."

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The US has been the largest LPG supplier to India so far this month, shipping 142,000 tonnes, or 27% of the 523,000 tonnes received. The UAE supplied 141,000 tonnes, Saudi Arabia 92,000 tonnes, Qatar 82,000 tonnes and Kuwait 11,000 tonnes. Iran supplied 43,000 tonnes, up from 11,000 tonnes in March, while Argentina, a rare supplier to India, shipped 10,000 tonnes.




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Before the war, Gulf countries accounted for about 54% of India's LPG consumption.

India has managed to move nine LPG carriers out of the Persian Gulf, supporting flows, but the dominance of Gulf producers in the spot market is limiting its ability to ramp up supplies. Globally, most LPG volumes are locked in through annual contracts, with barely 10% available on the spot market, leaving limited additional supply even at higher prices, industry executives said.