US Becomes Top LPG Supplier as Hormuz Closure Cuts Tanker Traffic to 11 a Day
Updated
Updated · OilPrice.com · Aug 5
US Becomes Top LPG Supplier as Hormuz Closure Cuts Tanker Traffic to 11 a Day
3 articles · Updated · OilPrice.com · Aug 5
Summary
Propane prices on the Texas Gulf Coast jumped nearly 10% in early March and were about 25% above February levels by mid-June as Hormuz disruptions squeezed LPG supply.
Iranian attacks have effectively closed the strait, slowing exports from Saudi Arabia, Qatar, the UAE and Iran; daily oil, chemical and LPG tanker traffic fell from about 54 before the war to 11 by late May.
US cargoes have gained appeal because they avoid Gulf war risk and potentially lower insurance costs, accelerating a shift already driven by the shale boom that turned America into the leading LPG exporter.
India is increasingly replacing Middle Eastern LPG with US propane, while Europe has also leaned more on US supply after sanctions redirected Russian trade flows.
About 60% of global LPG comes from four countries, yet import demand across Asia, Europe, South America and Africa keeps rising, with propane volumes projected above 213 million mt in 2026 and 260 million mt by 2031.