India Seals Historic LPG Deal With US, To Source 10% Of Imports In 2026: Hardeep Singh Puri
India to source 10% of its LPG imports from the US starting 2026 under a landmark energy deal.
India is set to source nearly 10 percent of its Liquefied Petroleum Gas (LPG) imports from the United States beginning in 2026, marking the first structured long-term supply contract between the two nations in this segment. The announcement was made by Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday, who emphasized that the move strengthens India’s energy security and deepens Indo-US economic relations.
The one-year contract, valued to cover around 2.2 million tonnes per annum, will come from the US Gulf Coast and is benchmarked to Mont Belvieu, one of the world’s key LPG pricing hubs. This agreement will make the US one of India’s primary LPG suppliers, further diversifying sourcing beyond traditional partners such as the Middle East. According to ministry officials, state-run oil marketing companies — IndianOil, Bharat Petroleum, and Hindustan Petroleum — jointly negotiated the deal following months of discussions with major US producers.
“The world’s fastest-growing LPG market is opening up to the US,” Puri said, adding that India’s diversified sourcing strategy is aimed at ensuring secure and affordable energy for its people. The deal, he noted, is a milestone in strengthening the energy partnership between the two countries, which already collaborate extensively in areas of crude oil, renewable energy, and liquefied natural gas.
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The development comes at a critical juncture as both nations look to finalize a broader trade package covering technology, energy, and manufacturing. Minister Puri also underscored India’s commitment to shielding consumers from global price volatility. Despite a 60 percent rise in LPG prices last year, he said, the government had taken on more than ₹40,000 crore in costs to keep domestic cylinder prices affordable, particularly for beneficiaries under the Pradhan Mantri Ujjwala Yojana scheme.
Nearly 100 million households benefit from subsidized LPG connections under Ujjwala, making stable fuel prices vital to the government’s welfare strategy. With this new US supply contract, India aims not only to reduce dependence on a few countries for LPG but also to secure long-term energy stability amid fluctuating geopolitical conditions.
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