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India Signs Landmark Agreement to Import 2.2 MTPA of US LPG in 2026

India has sealed a major liquefied petroleum gas (LPG) import agreement with the United States, a strategic move aimed at bolstering the nation’s energy security and broadening its network of global suppliers.

Union Petroleum Minister Hardeep Singh Puri announced that India’s state-owned oil marketing companies have entered into a one-year deal to procure 2.2 million tonnes per annum (MTPA) of LPG from the US starting in 2026. This supply volume accounts for nearly 10% of the country’s total annual LPG consumption.

Describing it as India’s first formal, structured procurement contract for US-origin LPG, Puri confirmed that deliveries will be sourced from the US Gulf Coast. He emphasized that the agreement supports India’s ongoing efforts to secure reliable, affordable energy by diversifying its import portfolio. Prior to the deal’s finalization, senior representatives from Indian Oil, BPCL, and HPCL held multiple negotiations with key American producers.

Sharing the development on social media, Puri noted, “One of the world’s fastest-growing LPG markets is now opening wider to US suppliers. To ensure uninterrupted and affordable LPG access for Indian consumers, we continue to broaden our sourcing avenues.”

He further explained that pricing for the deal is linked to Mont Belvieu, one of the leading global LPG price benchmarks. Puri also reiterated that public-sector oil companies have shielded Indian households from volatility in international markets. Despite a surge of over 60% in global LPG prices last year, beneficiaries under the Ujjwala scheme continued receiving cylinders for INR 500–550, while actual market prices surpassed INR 1,100. To maintain affordability, the government absorbed more than INR 40,000 crore in costs.

The announcement coincides with ongoing discussions between India and the US on a wider trade agreement expected by late 2025. As part of the broader negotiations, Washington may consider easing tariffs previously imposed on Indian goods, including penalties tied to India’s purchase of Russian crude.

Industry analysts view the new LPG import pact as a significant expansion of Indo-US energy cooperation, offering India greater stability and long-term assurance in a period marked by global geopolitical uncertainty.