India: Diversifying LPG supply base and pricing implications

Join our market experts as they dive deep into the evolving LPG trade flows impacting India. With India set to receive its first term cargoes of US LPG in January 2026, this discussion explores the supply dynamics and pricing fundamentals from the US and compares them with the Mideast Gulf — still the primary supply base for India’s growing LPG demand.

We’ll cover:

• India’s first term cargoes of US LPG will start arriving in January 2026 and this podcast aims to look in depth at supply dynamics and pricing from the US as well as the comparative supply and pricing fundamentals from the Mideast Gulf, which remains the key supply base for India’s large and growing LPG market.
• US is now the world’s single largest single supplier of propane and butane.
• The US is also the largest trading hub for LPG in the world – with expanding storage, fractionation and export terminal capacity in and near Mont Belvieu, Texas.
• Argus assesses US LPG prices at the Mont Belvieu storage caverns, at the Enterprise, Energy Transfer, and Targa storage facilities.
• We also assess the Gulf coast fob price for propane and butane taking into account the terminal fee, based on a daily survey of participants to take into account spot deals, or bids and offers - using Enterprise in-well Mont Belvieu pricing. the assessment.
• The recently launched Argus cfr India prices for US origin propane and butane show the values of spot US LPG taking freight from Houston to India on a two port discharge basis and gives a pretty decent indication of landed US LPG prices to India, and as a comparison to delivered prices from the Mideast Gulf
• Argus also assesses daily a netback from the benchmark Argus Far East Index (AFEI) price to Mideast Gulf – which again serves as the price with which to compare Mideast Gulf supplies.
• With supply both from the US and Mideast Gulf set to increase in the coming years, India should have competitive options to source the growing requirement of LPG.Tune in for expert perspectives on what this means for pricing, trade flows, and future procurement strategies.

Tune in for expert perspectives on what this means for pricing, trade flows, and future procurement strategies.

This video was recorded in Dec 2025.