India Seals First Structured US LPG Supply Deal for 2026, About 10% of Imports

Overview

• Indian public sector oil firms concluded a one-year agreement to import about 2.2 MTPA of LPG from the US Gulf Coast for the 2026 contract year after months of talks with American producers.
• Officials described it as the first structured US LPG supply contract for the Indian market.
• The contracted volume equates to roughly a tenth of India’s annual LPG import needs.
• Pricing for these purchases is tied to the Mount Belvieu benchmark in Texas.
• The government framed the deal as supporting affordable household supply, noting it bore over Rs 40,000 crore last year to shield Ujjwala consumers during a sharp global price surge.