India’s state-run refiner Bharat Petroleum Corporation Ltd (BPCL) is in talks with global suppliers to replace a Middle East shipment of liquefied petroleum gas (LPG) with a cheaper cargo from the United States, BPCL’s finance chief Vetsa Ramakrishna Gupta said on Friday.
“We are approaching suppliers. We see a small opportunity in U.S. LPG. We expect a net benefit of $20 to $30 per ton,” Gupta told analysts, according to Reuters.
The shift comes as the U.S.-China trade war has disrupted global energy routes, making U.S. LPG more competitive compared to Middle Eastern supplies.
Currently, over 80% of India’s LPG comes from long-term deals with Middle East exporters such as Saudi Arabia, the UAE, Kuwait, and Qatar.
Boosting U.S. energy imports could also help India in ongoing tariff and trade talks with Washington. India is stepping up crude oil purchases from the United States ahead of key discussions on American trade tariffs this month.
According to data from analytics firm Kpler, 11.2 million barrels of U.S. crude are expected to reach India in June. If realized, it would mark the largest monthly volume since August 2024.
State-owned refiners such as BPCL and Indian Oil Corporation have bought at least 6 million barrels of U.S. crude through tenders in May, Bloomberg reported.
Many Asian countries are ramping up imports of U.S. energy products in a bid to avoid steep tariffs imposed by the United States in April. Delegations from across Asia and Southeast Asia are now traveling to Washington D.C. to negotiate tariff relief.
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