1 Apr 2025
In a notable shift towards energy self-sufficiency, India has reduced its ethane imports from the United States for the sixth consecutive year in 2024, according to data released by the U.S. Energy Information Administration (EIA).
India, once a top importer of U.S. ethane, accounted for 13.22 percent of total American ethane exports last year — equivalent to 23.80 million barrels — trailing behind China (46 percent) and Canada (15 percent). The country had ranked second in 2023, importing 26.85 million barrels and making up 15.62 percent of total U.S. exports that year.
India’s share of U.S. ethane imports has steadily declined since its 2019 peak, when it represented over one-third of all American ethane exports at 30.41 million barrels. This figure dropped to 26.85 percent in 2020, 19.38 percent in 2021, and 18.24 percent in 2022.
Analysts attribute the decline to India’s strategic emphasis on domestic petrochemical production and industrial self-reliance, in line with its ‘Make in India’ initiative. A trade source explained,
“Make in India is helping lower import dependence as public sector oil marketing companies (OMCs) and private players expand their petrochemical capacities to diversify revenues. New plants are increasingly using dual-feed systems, utilizing both natural gas and naphtha crackers.”
The reduction in imports coincides with India’s broader efforts to strengthen its domestic ethylene production. According to a 2022 report from the U.S. Department of Energy, India produced 8.9 million tonnes of ethylene in 2020, with plans to boost production by over 46 percent by 2028.
The U.S., which became a major ethane exporter following its shale gas boom, continues to benefit from a surge in global petrochemical demand, competitive pricing, and enhanced tanker capacities. However, the profitability of U.S. ethane exports depends heavily on price spreads between ethane and natural gas. When ethane commands higher premiums, producers extract more from natural gas streams; otherwise, more ethane is left within the stream.
India's declining dependence on imported ethane also reflects policy measures under ‘Make in India,’ which mandate rising local content requirements in public procurement, increasing from 50 percent in 2019 to a targeted 80 percent by 2025.
This strategic move is expected to bolster India's domestic manufacturing sector, create jobs, and reduce vulnerabilities to external energy market fluctuations, while positioning India as a competitive player in the global petrochemical space.