# CNG, LPG and biogas distribution: Geopolitics and regulation Hormuz and the kitchens of India Source page: https://www.materialinsights.org/energy/e_cng_lpg/geopolitics/ What this tab covers Political and regulatory forces that help (tailwinds) or hinder (headwinds) this way of moving energy, dated. LPG trade depends heavily on two sources, the US Gulf Coast and the Middle East Gulf, so the 2026 closure of Hormuz hit cylinder users in Asia directly. #### Tailwinds **US supply growth** 2024 US LPG output reached about 110 Mt in 2024, twice the Middle East's^[1](https://www.argusmedia.com/en/news-and-insights/latest-market-news/2732380-q-a-global-lpg-growth-defies-2024-headwinds) **Shift to piped gas in India** 25 May 2026 Government barred piped-gas customers from buying LPG cylinders with immediate effect^[5](https://pgjonline.com/news/2026/may/india-bars-piped-gas-users-from-buying-lpg-cylinders-amid-supply-shortage) **Biomethane growth** Gas year 2024 to 2025 Grid injection in Europe up about 12% to 43.2 TWh^[8](https://www.entsog.eu/sites/default/files/2026-02/ENTSOG%20Report%20on%20Annual%20Renewable%20Gas%20Injections%20into%20Gas%20Networks%202026.pdf) **Clean cooking push** 2025 About 1 billion people in Africa lack clean cooking; LPG serves over 60% of newly connected households in IEA's roadmap^[17](https://www.iea.org/news/accelerating-clean-cooking-investment-can-propel-africa-towards-full-access-by-2040) #### Headwinds **Hormuz closure** March to June 2026 About 60% of India's LPG demand is imported and about 90% of imports come from the Middle East; India cut supplies to some industries, and consumption fell 8% in the first half of 2026^[4](https://www.businesstoday.in/latest/economy/story/lpg-consumption-falls-8-in-h1-2026-as-west-asia-conflict-disrupts-supplies-540664-2026-07-02)^[5](https://pgjonline.com/news/2026/may/india-bars-piped-gas-users-from-buying-lpg-cylinders-amid-supply-shortage) **Supply gap and rerouting** March 2026 Drewry projected a 1.0 Mt gap for India in March and April 2026; the US share of India's imports was expected to rise from 6% in 2025 to 10%^[3](https://www.rivieramm.com/news-content-hub/india-faces-lpg-supply-crisis-despite-vlgc-transits-through-hormuz-88163) **Export terminal bottlenecks** 2024 to 2025 US Gulf Coast loading fees hit records, peaking at 165 USD per tonne in September 2024, with terminals near capacity until new docks opened^[13](https://www.drewry.co.uk/maritime-research-opinion-browser/lpg-trade-growth-will-be-curbed-in-2025-due-to-us-terminal-capacity-limitations) **Wider Gulf disruption** 2026 The same closure cut Qatar and UAE LNG supply by about 45% in 2026^[11](https://www.iea.org/reports/gas-market-report-q3-2026/executive-summary) Because LPG cooks food for hundreds of millions of households, governments treat it as a social good, with subsidised cylinders and price controls. That shields users but leaves state budgets exposed when import prices spike, as in 2026, when India prioritised household cylinders over commercial users. #### Sources 1. [Q&A: Global LPG growth defies 2024 headwinds (on the WLGA and Argus Statistical Review of Global LPG 2025)](https://www.argusmedia.com/en/news-and-insights/latest-market-news/2732380-q-a-global-lpg-growth-defies-2024-headwinds) Argus Media, 2025 2. [India faces LPG supply crisis despite VLGC transits through Hormuz](https://www.rivieramm.com/news-content-hub/india-faces-lpg-supply-crisis-despite-vlgc-transits-through-hormuz-88163) Riviera Maritime Media, 2026 3. [LPG consumption falls 8% in H1 2026 as West Asia conflict disrupts supplies (PPAC data)](https://www.businesstoday.in/latest/economy/story/lpg-consumption-falls-8-in-h1-2026-as-west-asia-conflict-disrupts-supplies-540664-2026-07-02) Business Today, 2026 4. [India bars piped gas users from buying LPG cylinders amid supply shortage (Reuters)](https://pgjonline.com/news/2026/may/india-bars-piped-gas-users-from-buying-lpg-cylinders-amid-supply-shortage) Pipeline and Gas Journal, 2026 5. [ENTSOG Report on Annual Renewable Gas Injections into Gas Networks 2026](https://www.entsog.eu/sites/default/files/2026-02/ENTSOG%20Report%20on%20Annual%20Renewable%20Gas%20Injections%20into%20Gas%20Networks%202026.pdf) ENTSOG, 2026 6. [Gas Market Report, Q3-2026: Executive summary](https://www.iea.org/reports/gas-market-report-q3-2026/executive-summary) IEA, 2026 7. [LPG trade growth will be curbed in 2025 due to US terminal capacity limitations](https://www.drewry.co.uk/maritime-research-opinion-browser/lpg-trade-growth-will-be-curbed-in-2025-due-to-us-terminal-capacity-limitations) Drewry, 2025 8. [Accelerating clean cooking investment can propel Africa towards full access by 2040](https://www.iea.org/news/accelerating-clean-cooking-investment-can-propel-africa-towards-full-access-by-2040) IEA, 2025 ## Other sections - [Summary](https://www.materialinsights.org/energy/e_cng_lpg/index.md) - [Overview](https://www.materialinsights.org/energy/e_cng_lpg/overview/index.md) - [Correlation](https://www.materialinsights.org/energy/e_cng_lpg/correlation/index.md) - [How it works](https://www.materialinsights.org/energy/e_cng_lpg/explain/index.md) - [Efficiency and losses](https://www.materialinsights.org/energy/e_cng_lpg/efficiency/index.md) - [Technology advances](https://www.materialinsights.org/energy/e_cng_lpg/advances/index.md) - [Value chain](https://www.materialinsights.org/energy/e_cng_lpg/valuechain/index.md) - [Unit economics](https://www.materialinsights.org/energy/e_cng_lpg/economics/index.md) - [Impact on the biosphere](https://www.materialinsights.org/energy/e_cng_lpg/biosphere/index.md) - [Relationships](https://www.materialinsights.org/energy/e_cng_lpg/links/index.md)