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India's Historic LPG Deal with US: How 2.2M Tonnes Will Secure Energy Future

India has made history by signing its first long-term LPG import deal with the United States. The agreement covers 2.2 million tonnes annually, representing nearly 10% of India's total LPG imports. This strategic move diversifies India's energy sources and strengthens energy security for the world's fastest-growing LPG market. The deal follows months of negotiations between Indian oil companies and major American producers.

Key Points: India Signs First Long-Term LPG Import Deal with United States

  • First-ever long-term LPG contract between India and US for 2.2 million tonnes annually
  • Deal represents nearly 10% of India's total annual LPG import requirements
  • Supplies will be sourced from US Gulf Coast with Mount Belvieu pricing benchmark
  • Government absorbed Rs 40,000 crore subsidy to protect Ujjwala consumers from price shocks
3 min read

India signs historic LPG deal with the US: Hardeep Puri

India secures historic 2.2 MTPA LPG deal with US, diversifying energy sources and ensuring affordable cooking gas for millions of households across the country.

"A historic first! One of the largest and the world's fastest-growing LPG market opens up to the United States. - Hardeep Singh Puri"

New Delhi, November 17

In a major step towards strengthening India's energy security, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Monday 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 minister shared the development through a social media post on Monday, calling it a "historic first" for the country's LPG market.

He stated, "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".

Highlighting India's position as one of the largest and the fastest-growing LPG markets in the world, Puri said that the new agreement marks a significant milestone in the country's efforts to diversify its LPG sourcing.

According to the minister, the Indian PSU companies have concluded a contract to import around 2.2 million tonnes per annum (MTPA) of LPG for the contract year 2026.

This volume represents close to 10 per cent of India's annual LPG imports and will be sourced from the US Gulf Coast. He noted that this will be the first structured long-term contract involving US LPG for the Indian market.

Puri explained that the purchase has been benchmarked to Mount Belvieu, a key pricing point for global LPG trade.

He added that teams from Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) had visited the United States in recent months to hold discussions with major American producers, which have now been successfully concluded.

The minister also highlighted the government's commitment to ensuring affordable LPG for Indian households, particularly for women benefitting from the Pradhan Mantri Ujjwala Yojana.

He pointed out that even as global LPG prices surged by more than 60 per cent last year, Prime Minister Narendra Modi ensured that Ujjwala consumers continued to pay only Rs 500-550 per cylinder, against an actual cost of over Rs 1,100.

To shield consumers from international price shocks, the Government of India absorbed a burden of over Rs 40,000 crore during the year.

He also shared that the new US import deal reinforces the government's ongoing efforts to secure reliable and affordable energy supplies for the people of the country.

- ANI

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Reader Comments

R
Rohit P
Finally some strategic thinking! We've been too dependent on Middle East suppliers. US partnership brings more stability and better pricing options. Hope this translates to consistent cylinder prices for common people.
S
Sarah B
While diversification is good, I hope we're not becoming too dependent on any single country. The 2.2 MTPA is significant - nearly 10% of our imports. We should continue exploring other sources too for true energy security.
A
Arjun K
The Rs 40,000 crore subsidy burden mentioned shows the government's commitment to protecting consumers. But long-term solutions like this US deal are what we need. Strategic partnerships like this make India stronger globally. 🇮🇳
M
Michael C
As an energy sector professional, I appreciate the structured long-term contract approach. Benchmarking to Mount Belvieu makes sense for global pricing. This could set a new standard for India's energy imports. Good work by the PSU teams!
K
Kavya N
My mother still pays only Rs 500 for her Ujjwala cylinder while actual cost is double. This deal should help maintain this support for poor families. Hope the benefits reach every household that needs it.

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