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India Inks First US LPG Supply Contract for 2026, Covering About 10% of Imports

Benchmarking to the US Mount Belvieu hub, the one-year deal marks a deliberate diversification away from a Gulf‑centric LPG supply base.

Overview

  • Indian Oil, BPCL and HPCL finalized a one‑year agreement to import 2.2 MTPA of LPG from the US Gulf Coast for the 2026 contract year.
  • The purchase is India’s first structured US LPG contract and is priced off the Mount Belvieu benchmark.
  • Officials from the three state-run firms held months of talks with major US producers before concluding the deal.
  • The government presents the move as strengthening energy security and protecting affordability after spending over Rs 40,000 crore to shield PMUY households during a >60% global price surge.
  • Press reports link the deal to broader USIndia trade discussions and name likely sellers such as Chevron, Phillips 66 and TotalEnergies Trading, with shipments expected on very‑large gas carriers.