In an effort to boost India’s energy security, Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday announced a “historic” deal to import liquefied petroleum gas (LPG) from the US. He
said India has been diversifying its LPG sourcing.
According to the minister, Indian PSU oil companies have successfully concluded a one-year deal for imports of around 2.2 million tonnes per annum (MTPA) of LPG from the US Gulf Coast for the contract year 2026.
This represents nearly 10% of India’s annual LPG imports and is the first structured US LPG contract for the Indian market.
“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, close to 10% of our annual imports – for the contract year 2026, to be sourced from the US Gulf Coast- the first structured contract of US LPG for the Indian market,” Puri said in a post on X.
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,…
— Hardeep Singh Puri (@HardeepSPuri) November 17, 2025
Highlighting the government’s efforts to ensure affordable and secure energy supplies, Puri added, “In our endeavour to provide secure affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing.”
He added that teams from Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) had visited the US to discuss with major US producers over the last few months, which have been concluded now.
Puri explained, “This purchase is based on using Mount Belvieu as the benchmark for LPG purchases and a team of our officials from Indian Oil Corp Ltd, Bharat Petroleum, and Hindustan Petroleum Corporation had visited the US and engaged in discussions with major US producers over the last few months, which have been concluded now.”
He also highlighted the government’s commitment to provide LPG cylinder at subsidised rates to Ujjwala consumers.
“Under the leadership of PM Narendra Modi Ji, our PSU oil companies have been providing LPG at the lowest global prices to all our mothers and sisters. Even as global prices soared by over 60% last year, Modi Ji ensured that our Ujjwala consumers continued to receive LPG cylinder at just Rs 500-550 whereas the actual cost of the cylinder was over Rs 1,100. Government of India incurred the cost of over Rs 40,000 crores last year in order to ensure our mothers and sisters did not feel the burden of rising international LPG prices,” Puri added.
In September, Union Commerce and Industry Minister Piyush Goyal had said India was expected to increase energy trade with New Delhi while addressing an event in New York. The minister also pointed out that India powers US’ growth story by providing “huge amount of talent and innovation”. “We expect to increase trade with US on energy products in the years to come,” Goyal had told those attending the US-India Strategic Partnership Forum in New York.
In February this year, India and the US in a joint statement had also vowed deepening energy cooperation between the two nations.
“The leaders agreed that energy security is fundamental to economic growth, social well-being and technical innovation in both countries. They underscored the importance of US-India collaboration to ensure energy affordability, reliability, and availability and stable energy markets,” according to the joint statement in February.
