India Signs First Long-Term LPG Import Agreement with the United States for 2026 Supply

India Seals First Historic LPG Import Deal with the United States

India has signed its first-ever structured long-term agreement to import liquefied petroleum gas (LPG) from the United States, marking a significant milestone in its energy security strategy. The one-year contract, effective in 2026 , will supply 2.2 million tonnes per annum (MTPA) —equivalent to nearly 10% of India’s total annual LPG imports . The deal signals a deepening of India–US energy cooperation and reflects New Delhi’s broader diversification efforts in global fuel sourcing.

First Structured India–US LPG Trade Agreement

The Union Petroleum Minister described the deal as a “historic landmark” in India’s expanding LPG landscape. Although the US has emerged as a major exporter globally, this is the first time India has secured a formalised, year-long supply contract from American producers. The agreement is set to provide stable volumes for India’s massive household LPG consumption base.

Coordinated Engagement by Indian PSUs

The contract was finalised after coordinated negotiations involving Indian Oil Corporation (IOCL) , Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL) . During recent visits to the US, representatives met leading suppliers and agreed on transparent procurement terms benchmarked to the Mount Belvieu pricing hub—one of the world’s most authoritative benchmarks for LPG.

Boost to Household Welfare and Price Stability

Officials emphasised that the assured supply will shield Indian households from fluctuations in global LPG markets. Despite global LPG prices surging over 60% last year, targeted subsidies ensured beneficiaries continued receiving affordable cylinders. The US deal strengthens India’s ability to maintain welfare support and stable market access.

Exam Oriented Facts

• India to import 2.2 MTPA of LPG from the US in 2026.

• Accounts for ~10% of India’s annual LPG imports.

• Pricing benchmark: Mount Belvieu hub.

• Agreement jointly negotiated by IOCL, BPCL, HPCL .