Indian refiners boost LPG output amid Middle East supply disruptions

Indian state refiners are increasing their production of liquefied petroleum gas (LPG) by nearly 20% in September, driven by seasonal demand during the festive season and disruptions to imports from the Middle East. Local production has averaged 44,000 tons daily this month, a significant rise from August's figures, according to Bloomberg data cited by Indian media.

Despite efforts to diversify import sources to the United States and Africa, the United Arab Emirates remains India's largest supplier of LPG. The UAE has managed to maintain its exports by bypassing the Strait of Hormuz for crude oil via a pipeline to Fujairah and by using smaller vessels to shuttle products to the Gulf of Oman for loading onto larger tankers. ADNOC, the Emirati energy major, has confirmed its commitment to delivering all contracted LPG volumes to Indian buyers in October, despite the ongoing geopolitical tensions.

The blockage at the Strait of Hormuz, through which 90% of India's LPG imports previously transited, has directly impacted consumers. While demand is expected to be lower than last year due to destruction in the industrial sector, LPG remains a crucial cooking fuel for approximately 60% of Indian households.