India signs first-ever one-year LPG import agreement with the United States

Staff Report | PNN

India’s Petroleum and Natural Gas Minister Hardeep Singh Puri announced on Monday that Indian state-owned oil companies have signed a one-year contract to import liquefied petroleum gas (LPG) from the United States for the first time.

The minister posted on social media: “A historic moment! One of the world’s largest and fastest-growing LPG markets opens for the United States. We are pursuing supply diversification to ensure safe and affordable LPG for the people of India. Under this initiative, Indian PSUs have signed a one-year contract to import approximately 2.2 million tons per year (MTPA) of LPG.”

He added that this contract is a major milestone for India’s LPG market. Under the 2026 agreement, the imported quantity will account for 1.10% of India’s annual LPG imports and will be supplied from the U.S. Gulf Coast.

The minister stated that this is the first long-term structured agreement for the U.S. LPG market in India. Purchase prices have been set according to the Mount Belview International LPG trading reference price. Representatives of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) negotiated with major U.S. suppliers over the past few months and successfully completed the contract.

He further noted that under Prime Minister Narendra Modi’s leadership, the government has been ensuring affordable LPG for women through the Pradhan Mantri Ujjwala Yojana (PMUY). Even when international LPG prices rose over 60% last year, beneficiaries paid only 500–550 INR per cylinder, while the actual cost exceeded 1,100 INR.

Additionally, the government spent over 40,000 crore INR to shield consumers from global price hikes. This new U.S. import agreement will further strengthen the government’s effort to ensure reliable and affordable energy.