UAE's ADNOC to start supplying US LNG to India amid China-US tariffs – Reuters

According to industry sources cited by Reuters, Abu Dhabi National Oil Company (ADNOC) will start substituting some part of its liquefied petroleum gas cargoes to India with cheaper US supplies from early summer. This is attributed to changing global trade flows amid the trade confrontation between the US and China.

The move will allow ADNOC to supply more of its own gas to China, where buyers are paying more because of the need to replace US supplies after Beijing imposed high tariffs on them. It will also help lower the cost of liquefied natural gas for India, the world's second-largest importer.

However, a source told Reuters that it would be difficult for ADNOC to replace all of its supplies with US fuel. According to June Goh from Sparta Commodities, unlike China, India mainly uses natural gas domestically and requires a higher percentage of butane in the fuel. Thus, according to the expert, India may benefit from diverting US LPG cargoes, but not the propane ones.