Indian OMCs Turn To US For Long-Term LPG Supplies As West Asia Tensions Weigh

Indian oil marketing companies (OMCs) are in talks for long-term LPG supplies from the United States. Representatives of state-run OMCs are currently in the US to discuss availability, suppliers' terms, people aware of the development told NDTV Profit.

This move is expected to reduced reliance on Middle East and holds further significance amid ongoing US-India trade deal talks.

At present, OMCs have accelerated spot purchases, with the US supplying 3.6 MT of LPG from January to July, according to Kpler data.

Meanwhile, Bharat Petroleum said that it is buying a large volume of LPG cargoes from the US, with Indian time-chartered vessels heading there to pick up cargoes for the first time.

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NDTV Profit awaits responses from Union Oil Ministry and other state-run OMCs on plans to boost LPG procurement from US.

The latest development comes after India faced its worst LPG shortage after the closure of the Strait of Hormuz disrupted supplies, while its consumption fell 8% to 14.74 MT from January to June.

Earlier, Union Petroleum and Natural Gas Minister Hardeep Singh Puri said that the country had initially planned to source only a small share of its LPG requirements from the US. However, that share has increased sharply over the past few months amid ongoing West Asia uncertainty.

 Puri said the government had decided earlier this year to source around 10% of the country's LPG requirement from the US.
"Today, the United States accounts for something like 67% of our LPG imports" he said. "In other words, as some doors closed, others opened."

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