India Signs First Structured LPG Supply Deal with US for 2.2 MTPA

India has finalized its first structured contract to import 2.2 million tonnes per annum (MTPA) of LPG from the United States, marking a significant diversification in the country’s energy sourcing strategy. Petroleum Minister Hardeep Singh Puri announced that nearly 10% of India’s LPG imports for the contract year 2026 will originate from the US Gulf Coast, making this the first such long-term arrangement between the two nations. The move comes as India looks to ensure secure and affordable LPG supplies for its rapidly expanding consumer base.

As one of the world’s largest LPG consumers, India continues to depend heavily on imports, with domestic production meeting only about 35% of the country’s requirements. Traditionally, the Gulf region — led by Qatar, followed by the UAE, Kuwait, and Saudi Arabia — has dominated India’s LPG supply chain. The new deal with the US reflects India’s evolving strategy to diversify energy sources amid global market fluctuations. Negotiations were held by teams from IOCL, BPCL, and HPCL, and the pricing is benchmarked to Mont Belvieu, a key global reference for LPG rates.

Highlighting affordability measures, Puri noted that under Prime Minister Narendra Modi’s leadership, PSU oil companies have kept retail LPG prices among the lowest globally. Despite a more than 60% surge in international prices last year, Ujjwala beneficiaries continued to receive cylinders at ₹500–550, with the government absorbing over ₹40,000 crore in subsidies to shield households — especially women — from rising global costs.