US now supplies 67% of India's LPG imports: Hardeep Puri
What's the story
The United States has emerged as India's biggest supplier of liquefied petroleum gas (LPG). Union Petroleum and Natural Gas Minister Hardeep Singh Puri revealed that India initially planned to source a small portion of its LPG requirements from the US. Puri said earlier this year that the government had decided to import around 10% of the country's LPG requirement from the US. The decision was taken independently and wasn't linked to concerns over developments in the Strait of Hormuz.
Supply shift
India imported 912.39 thousand tons of LPG from US
However, that figure has now increased significantly.
"Today I'm happy to inform you that the United States accounts for something like 67% of our LPG imports," Puri said.
According to maritime intelligence firm Kpler, India imported 912.39 thousand tons of LPG from the US in July this year, the highest among all supplier countries.
Supply evolution
Imports from UAE, Qatar, and Saudi Arabia plummet
Contrasting the surge in US imports, LPG imports from Gulf countries have seen a sharp decline.
The UAE's exports to India fell from 626.03 thousand tons in February to just 102 thousand tons by July. Qatar's supplies also plummeted from 431.02 thousand tons in February to a mere 19.32 thousand tons by July.
Saudi Arabia's exports dropped significantly as well, with no LPG being imported from the country in July, according to Kpler data.
Energy strategy
Diversification of LPG imports to other countries
Along with the US, India has also diversified its LPG imports from other countries like Iran, Kuwait, Oman, Bahrain, Iraq, Algeria, Nigeria, Argentina, Australia, Malaysia, Bangladesh, and Egypt.
This wider sourcing strategy comes in light of the disruption caused by the West Asia crisis.
While the LPG import basket underwent a major shift, Russia remains the top supplier of crude.
In July, India imported 2,763.73 thousand barrels per day (kbd) of crude from Russia, slightly up from June's 2,729.78 kbd.