India Inks Historic Deal To Source LPG From US, Targeting 10% Of Annual Imports

In a post on social media, Puri described the move as a “historic first” for the Indian LPG market.

According to Puri, the contract finalised by Indian PSUs will see the import of approximately 2.2 million tonnes per annum (MTPA) of LPG during the 2026 contract year.

Source : PTI

Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday announced a significant breakthrough in India’s energy sourcing strategy, confirming that public sector oil companies have signed a one-year agreement to import liquefied petroleum gas (LPG) from the United States for the first time.

‘A Historic First,’ Says Hardeep Singh Puri

In a post on social media, Puri described the move as a “historic first” for the Indian LPG 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,” he wrote.

Deal Covers Nearly 10% Of India’s Annual LPG Imports

The minister underlined that India remains one of the world’s largest and fastest-growing LPG consumers, and said the agreement marks a major milestone in the country’s efforts to broaden the origins of its LPG supply. According to Puri, the contract finalised by Indian PSUs will see the import of approximately 2.2 million tonnes per annum (MTPA) of LPG during the 2026 contract year. The volume amounts to nearly 10 per cent of India’s annual LPG imports and will be sourced from the US Gulf Coast—making it the first structured long-term arrangement for US-origin LPG destined for India.

Benchmark Pricing And Negotiations With US Producers

Puri added that the pricing for the deal has been benchmarked to Mount Belvieu, a key global reference point for LPG. He noted that teams from Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited had travelled to the United States in recent months for discussions with major American producers, culminating in the newly concluded agreement.

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

Government Reaffirms Commitment To Affordable LPG

Reiterating the government’s commitment to ensuring affordable LPG access, especially for Pradhan Mantri Ujjwala Yojana beneficiaries, Puri recalled that despite a more than 60 per cent surge in global LPG prices last year, Ujjwala consumers continued to pay only Rs 500–550 per cylinder against an actual cost exceeding Rs 1,100. He said the government absorbed over ₹40,000 crore during the period to shield households from international price volatility.

Strengthening India’s Long-Term Energy Security

Puri said the new import arrangement strengthens India’s long-term strategy to secure reliable, diversified and affordable energy supplies for its citizens.

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