India seals first-ever major LPG import deal with US, boosts energy security for 2026

THEBUSINESSBYTES BUREAU

NEW DELHI, NOV 17, 2025

India has taken a decisive step toward diversifying its energy basket with the announcement of its first structured long-term LPG import agreement with the United States. Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday confirmed that Indian PSU oil companies have concluded a one-year contract to import around 2.2 million tonnes per annum (MTPA) of LPG from the US Gulf Coast for 2026 — accounting for nearly ten percent of the nation’s annual LPG imports.

Calling it a “historic development,” Puri said the agreement marks the opening of one of the world’s largest and fastest-growing LPG markets to American suppliers for the first time. He noted that India has been unwavering in its efforts to secure stable and affordable LPG supplies by expanding sourcing avenues across the globe.

The structured contract is the outcome of detailed negotiations led by senior officials from IndianOil, BPCL and HPCL, who visited the US between July 21 and 24 this year to engage with major American producers. The final terms, benchmarked to Mount Belvieu prices, were successfully concluded following months of technical and commercial discussions.

Highlighting the government’s commitment to shield consumers from price volatility, Puri recalled that even as global LPG prices soared by over 60 percent last year, Ujjwala beneficiaries continued to receive cylinders at a subsidised rate of ₹500–550. Despite the actual LPG cost exceeding ₹1100, the Centre absorbed the burden, spending more than ₹40,000 crore to ensure that households — particularly women—did not face the brunt of rising international prices.

The Minister said the landmark sourcing arrangement for 2026 will significantly strengthen India’s energy security while reinforcing its mission to provide clean, affordable cooking fuel to millions of families.