India Signs First-Ever Long-Term LPG Import Deal with the U.S.

New Delhi: In a bid to strengthen the country’s energy security, Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday announced that Indian public sector oil companies have, for the first time, finalised a structured year-long contract to import liquefied petroleum gas (LPG) from the United States.

Describing the development as a “historic first”, Mr. Puri said in a social media post that one of the world’s largest and fastest-growing LPG markets had officially opened up to long-term sourcing from the U.S. Under the agreement, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) will collectively import 2.2 million tonnes per annum (MTPA) of LPG during the contract year 2026.

The volume represents nearly 10% of India’s annual LPG imports, and the supplies will be sourced from the U.S. Gulf Coast. Mr. Puri noted that the contract marks the first structured long-term arrangement for American LPG entering the Indian market. The pricing has been benchmarked to Mount Belvieu, a key global reference point.

The Minister further stated that teams from the three state-run firms had engaged in multiple rounds of discussions with major U.S. producers in recent months before finalising the deal.

Reaffirming the government’s commitment to shielding consumers from price fluctuations, Mr. Puri highlighted that despite global LPG prices rising by more than 60% last year, beneficiaries of the Pradhan Mantri Ujjwala Yojana continued to pay only ₹500–₹550 per cylinder. The government absorbed over ₹40,000 crore to maintain affordability for households, he added.

Mr. Puri said the new import agreement aligns with India’s broader strategy of diversifying energy sources while ensuring reliable, long-term access to LPG for domestic consumers.

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