NEW DELHI: India is increasingly turning to the United States for LPG and LNG as the conflict in West Asia disrupts shipments from traditional Gulf suppliers and forces energy buyers to widen their sourcing options, according to data from maritime intelligence firm Kpler.
India imported nearly 0.62 million tonnes of LPG from the US in August, following 0.89 million tonnes in July. American cargoes accounted for more than 73 per cent of India’s LPG imports in August, highlighting the rapid change in the country’s supply pattern.
The shift has followed disruptions around the Strait of Hormuz, one of the world’s most important energy shipping routes. The waterway is used extensively to transport oil and gas from Gulf producers to countries such as India.
Kpler data showed a steep decline in LPG supplies from India’s traditional Gulf sources. The UAE supplied about 1,40,000 tonnes in August, while Qatar’s shipments stood at around 60,000 tonnes. Saudi Arabia did not send any LPG cargoes to India in July or August.
The scale of the shift is evident from the comparison with UAE supplies. India’s US LPG imports in July were almost equal to the country’s record monthly LPG shipment from the UAE of 0.891 million tonnes in October 2025.
The disruption has also altered India’s LNG procurement, although the country’s sources for LNG remain broader than those for LPG.
Qatar, historically India’s largest LNG supplier, supplied no LNG to India in April, while US deliveries increased to about 0.75 million tonnes in August from 0.72 million tonnes in July. Qatar has previously supplied up to 1.2 million tonnes of LNG to India in a month.
A temporary reduction in tensions between Iran and the US has also not resulted in an immediate fall in American shipments to India. According to Ritolia, energy markets take time to respond to geopolitical developments because contracts are negotiated in advance and cargoes may already be at sea.
The change in sourcing is, however, coming at an additional cost. Cargoes travelling from the US generally involve longer journeys than those originating in the Gulf, resulting in higher freight and insurance expenses. Tight global supplies have also contributed to higher commodity prices.
Russia remains India’s leading crude source
Despite the growing role of the US in LPG and LNG, Russia continues to be India’s biggest crude oil supplier.
India imported close to 2 million barrels per day of Russian crude in August, while the UAE, the second-largest source, supplied about 0.61 million tonnes, according to the data cited by Kpler.
Replacing Russian crude on a large scale would also pose economic and technical challenges. Although alternative barrels are available, Indian refiners would need to consider both cost and compatibility with their refinery configurations.
Venezuela has emerged as another source in India’s efforts to diversify crude supplies. India imported about 3,83,000 barrels per day of Venezuelan crude in August.
However, Venezuelan oil is generally heavy, meaning only certain Indian refineries can process it efficiently in large quantities. Its availability for India has also recently moderated as more Venezuelan crude has been directed towards the US.
The strong demand from US Gulf Coast refineries is partly explained by their ability to process heavier grades, increasing competition for Venezuelan barrels.
UAE maintains strong crude flows
UAE crude shipments to India have remained relatively robust despite the disruption around the region. Its ability to move crude through pipelines to Fujairah, along with offshore and ship-to-ship operations outside the Strait of Hormuz, has helped maintain exports.
These logistical advantages have allowed UAE supplies to remain comparatively steady while shipments from some other Gulf producers have been affected.
India’s changing energy procurement strategy reflects a broader effort to spread supply risks across different regions and suppliers. The US has become a major source for LPG and LNG, Russia continues to dominate crude imports, and UAE crude remains an important component of the basket. Venezuela and other alternative producers are also gaining relevance.
The strategy offers greater resilience against individual supply disruptions but brings higher transportation costs and, in the case of crude, potential challenges in matching imported grades with refinery requirements.
India’s current energy sourcing therefore reflects a combination of supply availability, global prices, shipping economics, fuel characteristics and the country’s broader objective of maintaining energy security amid geopolitical uncertainty.