In a landmark move aimed at boosting India’s energy security, the Government of India on Monday announced the conclusion of its first-ever structured long-term LPG import contract with the United States. The agreement, finalised by Indian PSU oil companies, will see India import around 2.2 million tonnes per annum (MTPA) of liquefied petroleum gas from the US Gulf Coast for the contract year 2026.
The decision was announced by Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, who described it as a “historic development” that opens one of the world’s largest LPG markets to US suppliers. The deal accounts for nearly 10 percent of India’s annual LPG imports, making it a significant diversification of supply sources.
According to the Minister, India has been focused on securing reliable and affordable LPG supplies amid global volatility. As part of this effort, a delegation from IndianOil, Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) visited the United States from 21 to 24 July 2025. The team held discussions with leading US producers, using Mount Belvieu pricing as the benchmark. These negotiations resulted in the successful finalisation of the structured contract.
Shri Puri underscored that under the leadership of Prime Minister Narendra Modi, India’s PSU oil companies have consistently worked to keep household LPG prices affordable. Even as international LPG prices rose by over 60 percent last year, beneficiaries of the Pradhan Mantri Ujjwala Yojana continued to receive cylinders at subsidised rates of ₹500–550, despite actual market prices exceeding ₹1100. The government absorbed the difference, spending more than ₹40,000 crore to cushion families, particularly women, from price shocks.
The Minister added that the new US sourcing arrangement marks another important step in India’s mission to ensure stable, affordable access to clean cooking fuel for millions of households, while reinforcing the nation’s long-term energy security.