Bloomberg reported that India will increase purchases of LPG from the United States by more than 25%
Under the new contracts, the three largest state. Indian refineries will purchase from the United States up to five batches of LPG 46 thousand tons per month. The volume of contracted supplies can grow from 2.2 million to 2.76 million tons per year, and the share of gas from the United States – up to 15%
Indian state-owned refiners plan to increase purchases of liquefied hydrocarbon gas (LPG) from the US by more than 25% under annual contracts for 2027 amid supply disruptions from the Gulf region. Bloomberg reports.
Sources familiar with the terms of the tender say Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. They intend to buy up to five batches of LPG in the United States for 46 thousand tons per month against four batches under existing contracts. Each batch will have equal shares of propane and butane.
About the same conditions of the tender writes Reuters with reference to the relevant document.
If new agreements are concluded, the volume of contracted supplies from the United States will increase from 2.2 million to 2.76 million tons per year. Indian authorities have instructed companies to increase the share of American LPG in long-term imports to at least 15% by 2027 from the current 10%.
The increase in purchases in the United States, according to Bloomberg, will allow India to reduce its dependence on supplies from the Middle East. Before the U.S.-Iran conflict, the region accounted for more than 90% of India’s LPG imports, but supply disruptions through the Strait of Hormuz have led to fuel shortages.
India is the second largest importer of LPG in the world, second only to China. The United States, in turn, is the largest supplier of liquefied hydrocarbon gas to the country: from the beginning of the year to August, the volume of supplies, including spot lots, reached a record 3.9 million tons.
Despite the consequences for the energy market due to the conflict in Iran, refineries in India and the United States are increasing fuel exports. Reuters previously wrote that rising prices and supply shortages allow these countries to increase supplies to countries previously dependent on fuel not only from the Middle East, but also from Russia, as the conflict in Ukraine also affected global supplies.
However, India and the U.S. are in peak season for domestic fuel consumption, limiting refineries’ ability to further boost exports.
