India’s First US LPG Agreement: Key Details Announced by Hardeep Singh Puri

India has taken a major step in strengthening its energy security with a first-of-its-kind agreement to import LPG from the United States. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced on Monday that Indian public sector oil companies have signed a one-year contract to source LPG from the US marking the country's first structured long-term purchase deal with American suppliers.


Calling it a breakthrough development, the minister posted on X, “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.”

India, which is among the world’s largest and fastest-growing LPG markets, will import around 2.2 million tonnes per annum (MTPA) under this new arrangement for the contract year 2026. The volume alone accounts for nearly 10% of the country’s total annual LPG imports and will be shipped from the US Gulf Coast.

Puri explained that this is the first time India is entering a formal long-term contract specifically for US-origin LPG. He added that the pricing for these purchases has been benchmarked against Mount Belvieu-the global reference point for LPG prices.

Teams from major Indian PSUs Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) recently travelled to the United States to negotiate the deal with leading American producers. According to Puri, the discussions have concluded successfully, marking a significant step toward diversifying India’s energy sourcing and ensuring reliable, affordable LPG supplies for millions of households.