India-US LPG Deal: In a major step towards strengthening India's energy security, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Monday
(November 17) announced that Indian public sector oil companies have, for the first time, signed a one-year deal to import liquefied petroleum gas (LPG) from the United States. The Union Minister called it a "historic first" for the country's LPG market. He said that the new agreement marks a significant milestone in the country's efforts to diversify its LPG sourcing. "A historic first! One of the largest and the world's fastest-growing LPG market opens up to the United States. In our endeavour to provide secure, affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing. In a significant development, Indian PSU oil companies have successfully concluded a 1-year deal for imports of around 2.2 MTPA LPG," he said in a post on X.
India-US LPG Deal: 5 Facts
1. PSUs have concluded a contract to import around 2.2 million tonnes per annum (MTPA) of LPG for the contract year 2026.
2. The volume represents close to 10 per cent of India's annual LPG imports and will be sourced from the US Gulf Coast.
3. This is the first structured long-term contract involving US LPG for the Indian market.
4. The LPG purchase has been benchmarked to Mount Belvieu, a key pricing point for global LPG trade.
5. With this deal, one of the largest and the world's fastest growing LPG market opens up to the US.
Hardeep Singh Puri said that India-US LOG deal reinforces the government's ongoing efforts to secure reliable and affordable energy supplies for the people of the country.
According to the Union Minister, teams from Indian Oil, BPCL and HPCL had visited the United States in recent months to hold discussions with major American producers.
