India's LPG imports from West Asia jumped 18% YoY, but share coming via ship-to-ship (STS) transfers off Oman, UAE rose from 12% to 38% in 2026.
Reason: cheaper Iranian and Russian LPG mixed with Saudi/Qatari origin to obscure source and get discount $60-80 per tonne. Private importers like Reliance, Nayara use STS.
Data shows average monthly imports 560 KT, with STS accounting for 212 KT. Gujarat's Pipavav, Dahej ports receive such cargoes.
Why STS? US sanctions on Iran, price cap on Russia. LPG not under price cap but shipping insurance costs high if origin Iranian. STS in international waters bypasses.
For India, which imports 60% LPG for PM Ujjwala, saving matters. Each $10 saving saves Rs 1,200 cr subsidy.
But riskUS now tracking LPG STS via satellite, as seen in sanctions on Indian firms. Also safety - LPG STS is risky, fire hazard.
Analytically, this is same as Russian crude via STS in 2022-23. India found loophole, now West pressures to close.
For policy, need clarity: should OMCs allow STS LPG for Ujjwala? Currently IOCL, BPCL avoid, private players do.
If US sanctions expand to LPG, prices could jump Rs 50 per cylinder.
Tags: #LPGImports #ShipToShip #WestAsia #USSanctions #IranLPG #PMUjjwala #OMCs #EnergySecurity #STS