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1h ago

India Strikes First U.S. LPG Supply Deal Covering 10% of 2026 Imports

The one-year, Mount Belvieu–linked purchase from the U.S. Gulf Coast signals a move to diversify LPG supply for consumer price stability.

LPG cylinders are seen at a gas distribution centre | Reuters file photo
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Overview

  • State-run IOC, BPCL and HPCL finalized a one-year contract to import about 2.2 MTPA of LPG for the 2026 contract year.
  • The deal is benchmarked to Mount Belvieu pricing and marks India’s first structured U.S. LPG purchase agreement.
  • Officials from the three PSUs visited the United States in recent months and concluded talks with major producers.
  • The volume equals roughly 10% of India’s annual LPG imports, broadening sourcing beyond traditional West Asian suppliers.
  • The government highlights consumer protection after covering over Rs 40,000 crore last year to cap Ujjwala cylinder prices, while analysts say the pact could deepen India–U.S. energy ties and lead to longer-term contracts.