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India Finalizes First U.S. LPG Supply Contract Covering 10% of 2026 Imports

Benchmarking to Mount Belvieu signals a push to diversify supply to support stable household LPG costs.

Overview

  • Indian Oil, BPCL and HPCL sealed a one-year purchase of 2.2 MTPA of LPG for the 2026 contract year, sourcing cargoes from the U.S. Gulf Coast.
  • The contracted volume equals nearly a tenth of India’s annual LPG imports, reducing reliance on long-standing West Asian suppliers.
  • Pricing is tied to the Mount Belvieu benchmark, integrating U.S. market references into India’s procurement framework.
  • The government frames the move as protecting consumers after last year’s >60% global LPG price spike, noting more than Rs 40,000 crore in subsidies to keep Ujjwala cylinders at Rs 500–550.
  • Industry sources told the Indian Express the joint tender was awarded to Chevron, Phillips 66 and TotalEnergies Trading, with commercial terms undisclosed.