India signs historic LPG deal with US for 2.2 million tonnes
India signs historic LPG deal with US for 2.2 million tonnes
India inks a one-year LPG import pact with the United States, importing 2.2 million tonnes to diversify supplies and stabilize prices under the Ujjwala scheme.
In a landmark move, India has sealed a one-year LPG import deal with the United States, marking a notable shift in its energy diversification strategy. Under the agreement, PSU oil majors IOCL, BPCL, and HPCL will import 2.2 million tonnes of LPG from the US, roughly 10% of India's annual LPG needs. This follows months of discussions between Indian oil PSUs and U.S. officials aimed at securing affordable, reliable energy supplies. Pricing details are still being finalised, but authorities say LPG under the Ujjwala scheme is likely to stay in the ₹500–₹550 range.
Industry sources note the deal is benchmarked to Mount Belvieu, a major U.S. pricing hub, and the arrangement signals a broader push toward diversification away from traditional suppliers. Analysts expect the arrangement, if extended, could bring price stability in the coming months, even as global markets evolve.
Officials emphasise that this is a one-year pilot to test logistics, pricing, and supply security, with potential for longer-term collaborations if successful.
Cover image source: ‘A historic first’: India to source 10% of LPG imports from US in 2026 🔗
