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India's Historic LPG Deal: 2.2 MTPA US Imports to Secure Energy Future

Indian public sector oil companies have secured a major LPG import deal from the United States. The agreement covers 2.2 million tonnes per annum to be sourced from the US Gulf Coast starting in 2026. This represents nearly 10% of India's total annual LPG imports and marks the first structured US LPG contract for the Indian market. The deal supports India's strategy to diversify energy sources while maintaining affordable LPG prices for consumers.

Key Points: Indian PSU Oil Companies Secure US LPG Import Deal for 2026

  • Deal represents nearly 10% of India's annual LPG imports from US Gulf Coast
  • Purchase uses Mount Belvieu as benchmark for LPG pricing
  • Indian Oil, BPCL and HPCL officials negotiated with US producers
  • Government absorbed Rs 40,000 crore subsidy to keep LPG affordable
2 min read

Indian PSU oil companies secure 'historic' deal to import 2.2 MTPA LPG from US: Puri

Indian PSU oil companies finalize historic deal to import 2.2 million tonnes of LPG annually from US Gulf Coast, diversifying energy sources and securing affordable supplies.

"In 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, Nov 17

In a key development, Indian public sector oil companies have finalised a deal for imports of around 2.2 million tonnes per annum (MTPA) LPG for the contract year 2026, to be sourced from the US Gulf Coast, Petroleum and Natural Gas Minister Hardeep Singh Puri said on Monday.

In a post on X social media platform, he said that in 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,” the minister said.

“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 per cent 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 informed.

This purchase is based on using Mount Belvieu as the benchmark for LPG purchases and “a team of our officials from Indian Oil, BPCL and HPCl had visited the US and engaged in discussions with major US producers over the last few months, which have been concluded now”.

Under the leadership of PM Modi, 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 per cent last year, PM Modi 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,” said the minister,

The Government of India incurred the cost of over Rs 40,000 crore last year “in order to ensure our mothers and sisters did not feel the burden of rising international LPG prices”, he mentioned.

—IANS

- IANS

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Reader Comments

R
Rohit P
Good strategic move to reduce dependency on Middle East suppliers. But I hope this doesn't mean we're paying premium prices for US gas. Need transparency on pricing details.
A
Arjun K
The subsidy of Rs 40,000 crore is massive! While it helps poor families, I wonder if this is sustainable long-term. Maybe we should focus more on renewable energy alternatives too.
S
Sarah B
As an expat in India, I appreciate how the government is ensuring energy security. This US deal shows India's growing global partnerships. Well done! 👏
V
Vikram M
My wife runs a small eatery and LPG prices directly affect our business. Happy to see government taking steps to secure supply. Hope this translates to stable prices for commercial users too.
M
Michael C
Interesting development in India-US energy trade. The Mount Belvieu benchmark is a smart choice. This could set a precedent for future energy deals between the two countries.

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