US to become India's largest LPG supplier, says OPEC
What's the story
The United States is poised to become India's largest liquefied petroleum gas (LPG) supplier, overtaking the Middle East Gulf (MEG). The prediction comes from the latest monthly oil marketing report by the Organization of the Petroleum Exporting Countries (OPEC). The shift is expected to account for over half of India's total LPG imports, a significant change for the world's second-largest consumer of this commodity.
Strategic deal
India, US inked sales agreement for LPG in 2025
OPEC's report also highlights a 2025 sales agreement between India and the US for LPG.
The deal is expected to make the US India's largest LPG supplier, accounting for some 55% of India's imports.
This development comes as a relief amid supply bottlenecks from the Middle East that have severely restricted LPG demand in India.
Demand forecast
India's oil demand to rise by 0.2MB/d in Q3 2026
OPEC also predicts that India's oil demand will rise by some 0.2 million barrels per day (mb/d) year-on-year in Q3 2026.
This comes after preliminary data from the Petroleum Planning & Analysis Cell (PPAC) showed a rebound in oil demand in July, ending three months of consecutive declines.
The shift toward US LPG is expected to offset some of the losses from the Middle East due to supply bottlenecks that severely restricted LPG demand in the country.
Export surge
US exports to India surpass annual totals for both commodities
Data from the US Energy Information Administration (EIA) shows that propane and butane exports from the US to India between January and May 2026, have already surpassed annual export totals for both commodities in any previous calendar year.
The US exported some 24,518 thousand barrels of propane and around 17,674 thousand barrels of butane during this period, exceeding last year's figures.