US Overtakes Gulf as India’s Largest LNG and LPG Supplier

Amid disruptions in the Strait of Hormuz, India has turned to the United States to meet its gas demand. 

According to Kpler data, the US became India’s largest supplier of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) in May.

US Gas Fills India’s Gulf Supply Gap

Washington shipped 630,000 tonnes of LPG to India in May, CNBC reported, citing Kpler. That figure stood roughly 60% above the 380,000 tonnes India received from all Gulf countries combined.

US LNG exports to India reached 900,000 tonnes over the same month. The volume covered more than 40% of total demand and tripled April’s level.

Analysts say the conflict accelerated a shift that was already underway. High freight costs had long kept American cargoes uncompetitive with Middle Eastern supply on a landed-cost basis, according to Rystad Energy’s Manish Sejwal.

Sumit Ritolia, lead research analyst at Kpler, expects the realignment to last.

“Going forward, the India–US energy trade will increasingly focus on gas,” he said.

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India Counts Its Reserves as the Crisis Drags On

India depended on the Strait of Hormuz for about 60% of its LNG imports and nearly all of its LPG supplies. The key shipping route has faced disruptions since the US and Israeli strikes on Iran began on February 28.

In May, Prime Minister Narendra Modi called on citizens to reduce fuel consumption and encouraged a return to work-from-home arrangements where possible.

Meanwhile, Petroleum Minister Hardeep Singh Puri told CNN-News18 that India could withstand supply disruptions for 30 to 60 days even if traffic through Hormuz remains affected. He said the country holds 76 to 80 days of fuel reserves across strategic storage facilities, refineries, and commercial inventories.

Whether US suppliers keep their new market share will likely depend on how long the disruption persists. Puri also added that India expects a steady increase in gas imports from Mozambique.

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