India is set to import 10% of its liquefied petroleum gas (LPG) requirements from the United States in 2026, marking a significant milestone in its energy sourcing strategy. Union Minister Hardeep Singh Puri announced that Indian state-run oil companies, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, have finalized a structured contract to import approximately 2.2 million tonnes of LPG from the US Gulf Coast region. This contract represents the first formal, structured deal of US LPG for the Indian market, highlighting Indias efforts to diversify and secure affordable energy supplies for its fast-growing demand.​

This landmark agreement signifies a new chapter in India-US energy relations, as India, one of the largest and fastest-growing LPG markets globally, opens its doors to US supplies. The deal is expected to enhance the reliability of LPG imports for India, reducing dependence on traditional suppliers and strengthening energy security. The import price will be benchmarked against the Mount Belvieu LPG price in the US, a key trading hub for LPG, ensuring transparent and competitive pricing for Indian buyers.​

Indian officials from the major oil companies engaged in extensive discussions with US producers over recent months to finalize this agreement. This strategic move aligns with India’s broader goal of diversifying its energy sourcing to mitigate risks posed by geopolitical uncertainties and fluctuating global energy markets. It also complements India’s commitments to ensure consistent fuel availability at affordable rates for its population, a critical factor in supporting domestic cooking fuel needs and industrial consumption.​

Looking ahead, this import deal could pave the way for deeper energy cooperation between India and the US, potentially extending into other petroleum products and energy sectors. The US, as a major LPG producer, stands poised to become a reliable partner for India’s growing energy demands, supporting the nation’s broader energy transition and economic growth ambitions.​ India’s decision to source nearly 10% of its LPG imports from the US in 2026 is a historic step toward energy diversification and enhanced bilateral cooperation. It will not only secure more stable fuel supplies for India’s consumers but also strengthen the strategic energy partnership between the two nations.

Disclaimer: This image is taken from Business Today.