India Signs First Structured US LPG Deal
India has signed its first structured annual deal to import 2.2 million metric tons of LPG from the United States in 2026, diversifying its supply sources and reducing reliance on Gulf nations. The agreement marks a strategic shift to bolster energy security and rebalance trade relations with the US.
India has secured its first structured annual contract to import 2.2 million metric tons of liquefied petroleum gas (LPG) from the United States, marking a significant shift in its energy sourcing strategy. The deal, signed by state-owned oil marketing companies, will see the US Gulf Coast supply about 10% of India's annual LPG imports starting in 2026. This move is designed to diversify India's supply base, reduce dependence on traditional Gulf suppliers, and strengthen energy security. The agreement also supports India's broader commitment to increasing energy purchases from the US, helping to rebalance trade relations. The volumes will be benchmarked to the Mount Belvieu price, and the deal follows extensive discussions between Indian officials and major US producers. The government's recent expansion of the Pradhan Mantri Ujjwala Yojana and plans to increase LPG storage capacity further underscore India's efforts to ensure stable and affordable fuel supplies for its population.
