US tops India’s LNG and LPG suppliers after Hormuz disruption

The United States became India’s largest supplier of liquefied natural gas and liquefied petroleum gas in May, shipping about 900,000 tonnes of LNG and 630,000 tonnes of LPG after disruptions in the Strait of Hormuz reduced Gulf exports.

Data from Kpler show US LNG deliveries to India in May reached roughly 900,000 tonnes, triple April’s volume and covering more than 40% of India’s LNG demand for the month. US LPG shipments to India totaled about 630,000 tonnes, roughly 60% higher than the combined deliveries India received from Gulf suppliers in the same period.

Shipping through the Strait of Hormuz faced interruptions after strikes on Iran at the end of February, which constrained Middle Eastern exports to South Asia and pushed Indian buyers to seek alternative suppliers.

Freight costs had previously made US cargoes less competitive on a landed-cost basis, Rystad Energy analyst Manish Sejwal noted. With Gulf flows reduced and global shipping rates elevated, American shipments became commercially viable for many importers.

Prime Minister Narendra Modi urged people to reduce fuel use and encouraged working from home where possible. Petroleum Minister Hardeep Singh Puri said India could withstand supply interruptions for 30 to 60 days if traffic through Hormuz remains affected, and that the country holds 76 to 80 days of fuel reserves across strategic storage, refineries and commercial inventories. He added that India expects a steady rise in gas imports from Mozambique.

Some analysts expect part of the shift to US supplies may persist. Sumit Ritolia, lead research analyst at Kpler, predicted: ‘Going forward, the India–US energy trade will increasingly focus on gas.’ He said the duration of Hormuz transit problems and how quickly Gulf exporters normalise shipments will determine whether the change is sustained.

US cargoes typically travel longer distances to Indian terminals, making freight rates and charter availability important determinants of competitiveness. If freight costs fall or Gulf exports recover, some buyers may revert to traditional suppliers. Buyers that secure long-term contracts with US producers could establish a more diversified supply mix.