India signs first long-term US LPG import deal to boost energy security

India has signed its first structured, long-term contract to import liquefied petroleum gas (LPG) from the United States a move the government says will significantly enhance the country’s energy security and diversify its supply sources amid rising global volatility.Union Petroleum and Natural Gas Minister Hardeep Singh Puri announced on Monday that state-run oil marketing companies have finalised a one-year contract to import around 2.2 million tonnes per annum (MTPA) of LPG from the US Gulf Coast for the contract year 2026. The volume represents nearly 10% of India’s annual LPG imports, marking a major shift in the country’s sourcing strategy.Calling the agreement a “historic first”, Puri said this development opens one of the world’s largest and fastest-growing LPG markets to the United States. He noted that the deal is India’s first structured, long-term contract involving US-origin LPG.

A historic first!

One of the largest and the world’s fastest growing LPG market opens up to the United States.

In our endeavour to provide secure affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing.

In a significant development,…

— Hardeep Singh Puri (@HardeepSPuri) November 17, 2025

The purchase will be benchmarked to Mount Belvieu, a key global pricing hub for LPG. Puri added that teams from Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) travelled to the US in recent months to negotiate with major American producers, culminating in the successful conclusion of the agreement.The minister underscored that the deal is aligned with the government’s broader energy-security strategy, focused on sourcing diversification and price stability. He said that despite global LPG prices rising over 60% last year, Prime Minister Narendra Modi ensured that beneficiaries under the Pradhan Mantri Ujjwala Yojana continued to pay only Rs500–Rs550 per cylinder, compared with an actual market cost of over Rs1,100. To protect consumers from price shocks, the government absorbed more than Rs40,000 crore in additional costs during the year.Puri emphasised that the new import arrangement strengthens India’s ability to secure reliable and affordable LPG supplies, particularly benefiting millions of households across the country.The agreement is expected to further deepen India-US energy cooperation and support India’s rapidly expanding LPG consumption under its clean cooking fuel initiatives.