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Indian LPG output rises as Strait of Hormuz disruptions tighten imports
So far in September, Indian state refiners produced about 44,000 tons of LPG per day, nearly 20% higher than August, though demand is expected to run below last year due to industrial weakness.
Indian state refiners are increasing liquefied petroleum gas output as a seasonal jump in domestic demand hits, while imports from the Middle East are still constrained by disruptions around the Strait of Hormuz, OilPrice reports, citing Bloomberg data.
The outlet says September LPG production has averaged about 44,000 tons per day, close to 20% above the August average. The increase is coming even as refiners diversify supply, with imports from the United States and Africa, and higher volumes from the United Arab Emirates.
OilPrice adds that the UAE has maintained crude and product exports despite the conflict by moving flows around Hormuz, including via a pipeline bypass to Fujairah for crude and smaller shipments to the Gulf of Oman before loading onto larger tankers for export.
Despite the diversification and festive-season timing, The Telegraph notes that LPG demand in India is likely to remain lower than last year because of demand destruction in the industrial sector. The article also cites ADNOC saying it will deliver all contracted LPG volumes for Indian buyers in October, with a company spokesperson describing continued commitment to customers and energy security.
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