Team siliconindia

• India signs its first long-term LPG import agreement with the US
• Deal secures about 2.2 MTPA of LPG, nearly 10% of India’s annual imports
• Move strengthens energy security and diversifies India’s fuel supply

India has taken a major step to boost its energy security by signing its first long-term deal to import liquefied petroleum gas (LPG) from the United States. Union Petroleum Minister Hardeep Singh Puri announced that public sector oil companies have finalized a one-year agreement to bring in around 2.2 million tonnes of LPG, marking a historic moment for the country’s fuel market.

Calling it a 'historic first', the minister said the deal opens India’s fast-growing LPG market to the US for the first time. The agreement supports India’s goal of securing stable and affordable LPG supplies while expanding its sourcing beyond traditional regions. According to Puri, the contract is set for the 2026 supply year, accounts for nearly 10% of India’s annual LPG imports and will come from the US Gulf Coast.

The purchase is benchmarked to Mont Belvieu, one of the world’s key LPG pricing hubs. Teams from Indian Oil Corporation (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) held several rounds of discussions with major American producers before finalizing the deal.

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Puri highlighted that India remains one of the largest and fastest-growing LPG markets globally. He emphasized the government’s ongoing efforts to ensure affordable LPG access, especially for households under the Pradhan Mantri Ujjwala Yojana. Even when global LPG prices jumped over 60% last year, the government absorbed more than Rs 40,000 crore to shield consumers and keep prices between Rs 500-Rs 550 per cylinder for Ujjwala beneficiaries.

The minister said the new US import agreement strengthens India’s long-term strategy to secure reliable, cost-effective energy supplies for its citizens.