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India signs one-year U.S. LPG supply agreement
India secures 2.2 MTPA of U.S. LPG for 2026 while reinforcing energy security amid renewed trade pressure from Washington.
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Anushka Pathak - Mon, 17, Nov 2025
- 14:52 EST
- 14
Representative image / Courtesy: Pexels
India has finalized its first structured liquefied petroleum gas (LPG) import agreement with the United States, locking in 2.2 million tonnes per annum from the U.S. Gulf Coast for 2026.
The deal, covering nearly 10 percent of India’s yearly LPG imports, marks a strategic shift aimed at strengthening supply security and diversifying away from traditional sources.
Indian Union Petroleum Minister Hardeep Singh Puri announced the development on Nov. 17, calling it a significant step in expanding India’s sourcing options.
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“One of the largest and the world’s fastest-growing LPG markets opens up to the United States,” he stated on X, adding that the government has continued “to provide secure affordable supplies of LPG to the people of India” through steady diversification efforts.
A historic first!
— Hardeep Singh Puri (@HardeepSPuri) November 17, 2025
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,…
The contract involves Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL). Teams from the three firms held recent negotiations with major U.S. producers, using the Mount Belvieu benchmark for pricing.
India, Asia’s second-largest LPG consumer after China, currently manufactures only about 40 percent of its requirement and depends heavily on suppliers in Qatar, the UAE, Kuwait, and Saudi Arabia.
The timing aligns with President Donald Trump’s renewed push for India to expand purchases of American energy as part of efforts to narrow a $40 billion trade deficit. Since Washington intensified its outreach earlier this year, Indian reliance on discounted Russian shipments—significant since 2022—has steadily receded.
Puri noted the administration’s focus on shielding households from global volatility. “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.”
The government’s Ujjwala scheme has expanded subsidized access for millions of families, and the new U.S. supply arrangement offers an additional buffer against price shocks.
This agreement comes as India and the United States continue trade discussions. Officials say New Delhi is awaiting Washington’s feedback on new proposals, following multiple conversations between Prime Minister Narendra Modi and President Trump since Sept. 2025. While engagement has increased, bilateral ties have faced periodic strain over tariffs and market access.
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