India signs first structured US LPG import contract

New Delhi, Nov 17: In a landmark move to bolster India’s energy security, Minister of Petroleum and Natural Gas Hardeep Singh Puri on Monday announced that Indian public sector oil companies have finalised a one-year structured contract to import about 2.2 million tonnes per annum (MTPA) of LPG from the US Gulf Coast for 2026. The agreement, India’s first structured LPG sourcing contract from the United States, accounts for nearly 10% of the country’s annual LPG imports. Calling it a “historic development,” Hardeep Singh Puri said the deal opens one of the world’s largest and fastest-growing LPG markets to American suppliers. He noted that India has been steadily diversifying its energy portfolio to secure affordable and dependable LPG supplies for domestic consumers.

The contract follows a visit by a delegation from IndianOil, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) to the United States from 21–24 July 2025.

The team held extensive discussions with major American LPG producers, using the Mount Belvieu benchmark for price negotiations. The talks culminated in the finalisation of the long-term structured supply arrangement. Minister underlined that under the leadership of Prime Minister Narendra Modi, PSU oil companies have ensured that Indian households continue to receive LPG at some of the lowest effective prices globally. Despite international LPG prices rising by more than 60% last year, Ujjwala beneficiaries paid only `500–550 per cylinder, while the actual market price exceeded `1,100. The government absorbed the difference, spending over `40,000 crore to protect families, particularly women, from the impact of global price volatility. The Minister said the new sourcing strategy for 2026 further strengthens India’s energy security and reinforces the government’s commitment to making clean cooking fuel affordable and accessible to millions of households nationwide.