INDIA'S LPG IMPORTS UPDOWN

PLATTS - 26 Nov 2019 - India imported 1.287 million mt of LPG in October, retreating 19% from the record high of 1.591 million mt imported in September, but still up 28.8% year on year, latest data released by the Petroleum Planning and Analysis Cell showed.

The year-on-year surge reflects the country's growing demand for LPG for household use; consumption in October rose to around 2.36 million mt, up 8.15% on month and up 14.34% on year.

October demand is seasonally strong in India due to the peak festive season of Diwali.

India's LPG imports over January-October totaled 11.884 million mt, up 19.5% on year, exceeding industry projections of 17% annual growth, the data showed.

The country's consumption over January-October rose 2.4% on year to 21.69 million mt.

Higher demand in 2019 was also partially attributed to it being the election year, which spurred stockpiling ahead of the April-May polls.

The lower imports in October from the month before comes as Indian state-run companies, which mainly source LPG from the Middle East, had some of their October-loading cargoes delayed or deferred in the aftermath of the September 14 attacks on Saudi facilities. This led to some companies issuing spot tenders to make up for the shortfall in term deliveries.

Both Indian Oil Corp. and Bharat Petroleum Corp. Ltd. issued import tenders for October delivery, but neither awarded their tenders due to tight Middle Eastern supply. This prompted BPCL to re-issue its tender. It was unclear if the re-issued tender was awarded.

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