India pivots to US for emergency LPG and LNG

As the maritime blockade of the Strait of Hormuz stretches deep into June, India has once again aggressively pivoted toward the United States to secure vital spot cargoes of Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG). This emergency diversification highlights India’s profound vulnerability to the Middle East chokepoint, where over 90% of its household cooking gas (LPG) and nearly half of its LNG supplies have historically been sourced and stranded. With domestic fuel retailers rationing gas and a highly fragile US-Iran ceasefire failing to yield consistent shipping passage, Indian energy majors have stepped up procurement through non-Hormuz pathways. To insulate the domestic economy from systemic energy shocks and skyrocketing spot market costs, refiners are rapidly maximising volumes under India’s newly signed 2026 one-year deal for 2.2 million metric tonnes of US LPG, while looking to secure additional long-term American LNG contracts, said a report. 

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