USA becomes largest supplier of liquefied petroleum gas (LPG) to India
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USA becomes largest supplier of liquefied petroleum gas (LPG) to India

Relations between India and the USA have significantly strengthened over the past year, particularly in the energy sector, where trade between the two countries has increased. Currently, the USA has become the largest supplier of LPG to India.

A senior official from the US Department of State, Bethany Morrison, announced this during an event at the New York press center for foreign journalists. She emphasized that the scope of partnership between India and the USA has expanded over time. The countries now cooperate in areas such as energy, defense, trade, and diplomacy.

Morrison noted that India is increasing its supply sources to meet its energy needs by attracting suppliers from various countries. In this situation, the USA has become a major energy supplier to India. She stated: 'We are proud that the USA is now the largest exporter of LPG to India. We are pleased that the USA is becoming its supplier as India diversifies its energy sources.'

Furthermore, a ten-year Defense Framework Agreement between India and the USA was mentioned. Morrison added that cooperation is developing not only in the defense sphere but also in nuclear energy. She also mentioned that India adopted the SHANTI law, amending regulations related to its nuclear sector after approximately twenty years. This is expected to strengthen cooperation between India and the USA in civil nuclear energy.

The American official stressed that interaction between India and the USA is not limited to energy and defense; the countries also have major trade agreements. Additionally, both countries actively work together on platforms such as the Quad. Morrison also noted that South Asia is important to the Trump administration. In her view, attention to South Asia was previously given mainly when crises arose in other parts of the world.

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Indian Government Activates Plan B to Boost Liquefied Gas Production Ahead of Festive Season
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Indian Government Activates Plan B to Boost Liquefied Gas Production Ahead of Festive Season

Amid ongoing tensions in the Middle East, including issues with sea routes such as the Strait of Hormuz and the Bab el-Mandeb, the Indian government has begun implementing its Plan B. This action is taken ahead of the festive season, when a rise in liquefied petroleum gas (LPG) consumption is expected, and potential supply disruptions from Persian Gulf countries could lead to shortages.

To ensure public needs during the holidays, state-owned refineries have focused efforts on increasing domestic LPG production.

According to a Bloomberg report, due to increased domestic demand for LPG during the festive period, state-owned refineries have started ramping up liquefied petroleum gas output. The reason for this is the persistent disruption of LPG supplies from the Persian Gulf amid tensions in West Asia, which poses risks to the country's energy security. Therefore, production increases were initiated even before the holidays due to supply uncertainties.

The government's plan is beginning to show results against the backdrop of seasonal demand and supply issues. Domestic LPG production at state-owned refineries has reached approximately 44,000 tonnes per day, which is nearly 20% higher than the average figure in August of last year. This growth in domestic production occurs while India prepares for a period of high consumption leading up to Diwali in November, and may also receive an additional boost from winter demand.

Although the series of attacks between the US and Iran has ceased, tensions around the Strait of Hormuz between these two countries persist. Consequently, the government is taking continuous steps to cover the LPG deficit in India, which arises from prolonged disruptions in oil and gas transportation along this critical maritime route. In this regard, the center has determined the distribution of LPG for states and key industries.

Previously, domestic refineries had reduced their high level of LPG production achieved during the war, as alternative supplies arrived from America and Africa during the summer. However, this proved insufficient for holiday needs, so domestic LPG production was increased again. Furthermore, the government reduced the minimum waiting period for refueling, which was in effect during the LPG supply crisis in March, from 45 to 25 days.

India is the world's second-largest importer of LPG and has historically been heavily dependent on supplies from the Persian Gulf. This dependence means the country is significantly affected by conflicts and trade instability in the region.

Regarding current LPG canister prices, in Delhi, the price for a 14.2 kg domestic LPG cylinder is 942 rupees, in Mumbai it is 941.50 rupees, and in Kolkata it is 968 rupees. In Noida, the price for a domestic cylinder is 939.50 rupees, while in Hyderabad it is the highest at 994 rupees. For a 19 kg commercial LPG cylinder, it costs 2,747.50 rupees in Delhi and 2,701 rupees in Mumbai.

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