US Tops India LNG and LPG Supply in May After Hormuz Disruptions

The United States became India’s largest supplier of liquefied natural gas (LNG) and liquefied petroleum gas (LPG) in May after disruptions to shipping through the Strait of Hormuz, delivering about 900,000 tonnes of LNG and 630,000 tonnes of LPG, according to Kpler data.

Kpler figures show U.S. LPG shipments to India in May totaled roughly 630,000 tonnes, compared with about 380,000 tonnes from all Gulf suppliers combined. U.S. LNG exports to India reached about 900,000 tonnes in the same month, covering more than 40% of India’s LNG demand and tripling April’s U.S. volumes. Freight and route dynamics shifted as Indian buyers rerouted cargoes.

The change followed interruptions to traffic through the Strait of Hormuz after air strikes involving the United States and Israel against Iran began on February 28. India depended on that route for about 60% of its LNG imports and nearly all of its LPG. In May, Prime Minister Narendra Modi urged citizens to reduce fuel use and encouraged more work-from-home arrangements to ease domestic consumption while supply routes remained uncertain.

Petroleum Minister Hardeep Singh Puri said India had fuel reserves amounting to about 76 to 80 days of cover across strategic storage, refinery stocks and commercial inventories, and estimated the country could withstand supply disruptions for 30 to 60 days. He added that New Delhi expects a steady rise in gas imports from Mozambique.

Analysts point to freight costs as a factor that had limited U.S. competitiveness on a landed-cost basis. Manish Sejwal of Rystad Energy noted high freight expenses had long weighed against American shipments. Sumit Ritolia, lead research analyst at Kpler, commented, “Going forward, the India–US energy trade will increasingly focus on gas,” and said he expects the realignment to persist.

How long U.S. suppliers keep a larger share of the Indian market will depend on the duration of the Hormuz disruption and on the evolution of freight costs and alternative supply routes.