Particle.news
Download on the App Store

India Finalizes First US LPG Supply Deal for 2026, Covering About 10% of Imports

Benchmarking to Mont Belvieu pricing, the one-year 2.2 MTPA deal diversifies supplies to support more stable household LPG costs.

Overview

  • Petroleum Minister Hardeep Singh Puri announced that Indian Oil, Bharat Petroleum and Hindustan Petroleum have sealed the agreement for the 2026 contract year.
  • The deal sources LPG from the US Gulf Coast and is India’s first structured contract for American LPG.
  • At 2.2 million tonnes per annum, the volume equals roughly a tenth of India’s yearly LPG imports and introduces the Mont Belvieu benchmark into settlements.
  • Industry sources say the joint tender was awarded to Chevron, Phillips 66 and TotalEnergies Trading, with commercial details not disclosed.
  • Officials framed the move as diversification away from traditional West Asian suppliers, noting the government spent over Rs 40,000 crore last year to shield Ujjwala households during a more than 60% global price surge.