ECONOMY
Oil companies seal first major LPG import deal with US, to buy 2.2 mtpa of the fuel
- IBJ Bureau
- Nov 18, 2025
In a significant development, government-controlled oil marketing companies (OMCs) will import around 2.2 mtpa of liquefied petroleum gas (LPG) from the US in 2026 calendar year. This is roughly one-tenth of the OMCs’ in-bound shipments of the critical cooking fuel.
This is among the first in a series of deals through which India aims to increase its purchase of energy products from the US.
India’s annual energy product procurements from Washington are around $13 billion, which New Delhi wants to top up with an additional $13 billion. It had consumed over 31 mt of LPG in FY25, with 90 per cent used in households for cooking.
Announcing the deal, Oil Minister Hardeep Singh Puri has said that one of the largest and the world’s fastest-growing LPG markets opens up to the US.
“In our endeavour to provide secure affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing. In a significant development, Indian PSU oil companies have successfully concluded a 1-year deal for import of around 2.2-mtpa LPG, close to 10 per cent of our annual imports, for the contract year 2026, to be sourced from the US Gulf Coast – the first structured contract of US LPG for the Indian market,” the minister has announced.
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