India Concludes First-Ever Major LPG Import Deal with United States

In a landmark move aimed at strengthening India’s energy security, Union Minister of Petroleum and Natural Gas Hardeep Singh Puri on Monday announced that Indian PSU oil companies have finalized a first-of-its-kind structured contract to import around 2.2 million tonnes per annum (MTPA) of LPG from the US Gulf Coast for the contract year 2026. The volume represents nearly 10 percent of India’s total annual LPG imports.

Calling it a historic development, the minister said the agreement officially opens one of the world’s largest and fastest-growing LPG markets—India—to long-term structured supplies from the United States. The Minister noted that this milestone marks a significant diversification of India’s LPG procurement landscape.

As part of India’s ongoing efforts to secure affordable and reliable LPG supplies, a delegation comprising officials from IndianOil, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) visited the US between 21 and 24 July 2025. The team held extensive discussions with key American producers, with Mount Belvieu serving as the pricing benchmark for negotiations. These talks culminated in the successful finalisation of the contract.

Puri highlighted that under the leadership of Prime Minister Narendra Modi, India’s PSU oil companies have consistently ensured the supply of LPG cylinders to households at some of the lowest effective global prices. Despite global LPG prices surging over 60 percent last year, Pradhan Mantri Ujjwala Yojana beneficiaries continued to receive cylinders at a subsidised rate of approximately ₹500–550, even as the actual market price crossed ₹1,100. The Government of India absorbed this burden, spending more than ₹40,000 crore to shield families—especially women—from the impact of rising international prices.

The Minister emphasised that the new procurement arrangement for 2026 further enhances India’s energy resilience while ensuring the continuous availability of clean cooking fuel to millions of households nationwide. He described the deal as another significant step towards securing stable, diversified and affordable LPG supplies for the country.

Union Minister of Petroleum and Natural Gas Hardeep Singh Puri took to X (formerly Twitter) to call this “A historic first!”