The production of liquefied petroleum gas (LPG) in India has reached 44,000 tons per day due to increased demand during the festive season and restrictions on imports from the Middle East. This production level in September 2023 is nearly 20% higher than the average production in August. This increase in production comes as India has diversified its import sources from the United States and Africa.
Imports from the United Arab Emirates
In recent months, India has also increased its imports from the United Arab Emirates. Despite tensions in the region, the UAE has ramped up its crude oil and product exports and has managed to navigate the Strait of Hormuz through a pipeline to Fujairah. Additionally, the country exports using small vessels to the Gulf of Oman and then loads fuel onto large tankers from there.
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According to reports, despite the diversification in imports and the festive season, demand for LPG in India is expected to be lower than last year due to reduced demand in the industrial sector. The United Arab Emirates remains the largest supplier of this energy commodity to India.
ADNOC's Commitment to Meet India's Needs
ADNOC (Abu Dhabi National Oil Company) has recently confirmed that despite the conditions in the Strait of Hormuz, it will supply all contracted volumes of LPG for Indian buyers in October. A spokesperson for the company stated, "As the largest supplier of LPG to India, ADNOC is fully committed to meeting customer needs and supporting India's energy security." The company continues to provide reliable and safe LPG supplies to Indian customers and collaborates with them to meet their needs.
About 60% of Indian households rely on LPG as their primary cooking fuel, and the closure of the Strait of Hormuz, through which 90% of India's total LPG imports pass, quickly impacted consumers and led to reduced demand.
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