Global seaborne LPG exports have rebounded toward their five-year average in May after a sharp disruption caused by the Middle East Gulf conflict and closure of the Strait of Hormuz, Vortexa analyst Rohit Rathod said in a Thursday note.
Exports recovered to around 4.8 million barrels per day on a 28-day moving average basis, easing pressure on supply-starved Asian buyers. However, global flows remain about 600,000 bpd below the historically high levels seen in February 2026.
The recovery has been driven largely by the US, the world's biggest seaborne LPG exporter, with additional support from Algeria, Canada, Malaysia, Sweden, and Argentina.
Global LPG imports, which slumped through April in line with falling export volumes, are also expected to recover in the second half of May as cargoes loaded last month arrive mainly in Asian markets.
Still, congestion around the Panama Canal threatens to slow the recovery, forcing some vessels traveling from the US Gulf Coast to Asia to reroute around the Cape of Good Hope, extending voyage times.
US LPG exports have expanded steadily since 2023 on the back of higher natural gas liquids production and added export capacity, with combined exports nearing 2.8 million bpd in April. Export volumes rose across major terminals, including Enterprise Houston, Energy Transfer Nederland, Targa Galena Park, Phillips 66 Freeport, and Energy Transfer Marcus Hook.
The startup of Enterprise's Neches River Terminal near Beaumont, Texas, also boosted exports, as the facility shipped its first cargo in April, ahead of its planned June launch.
Rathod said some terminals shifted flex capacity away from ethane exports toward LPG as stronger propane prices widened the Mont Belvieu propane-ethane spread to more than $325 per tonne on May 12.
India, heavily reliant on Hormuz-linked supplies, has increasingly turned to US LPG cargoes while boosting domestic production and curbing commercial consumption to narrow supply gaps.
India moved to curb commercial LPG consumption in early March while directing refineries to raise output. Domestic LPG production rose about 30% month-on-month and 27% year-on-year in March to roughly 524,000 bpd, according to PPAC data, while consumption fell 13% year-on-year to about 911,000 bpd.
The roughly 350,000-400,000 bpd supply gap could narrow after Nayara Energy's 400,000 bpd refinery resumes operations in mid-May following maintenance, adding an estimated 45,000 bpd of LPG supply. The remaining shortfall will need to be met through imports or further demand curbs.