India Signs First Long-Term US LPG Import Deal for 2026

India's state-run oil companies have signed their first long-term contract to import 2.2 million tonnes of liquefied petroleum gas from the United States Gulf Coast in 2026, a move aimed at diversifying energy supplies amid ongoing trade negotiations with Washington. The agreement, announced on November 17 by Union Minister for Petroleum and Natural Gas Hardeep Singh Puri, involves Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, and marks a significant expansion of U.S. involvement in India's LPG market.

The one-year deal covers nearly 10 percent of India's annual LPG imports, with supplies provided by Phillips 66, Chevron and TotalEnergies. Phillips 66 will deliver two cargoes per month, while Chevron and TotalEnergies will each supply one. The pricing is benchmarked to the Mont Belvieu hub in Texas, a major U.S. reference for natural gas liquids. Officials from the three Indian companies visited the U.S. in July to discuss terms with local producers, finalizing the contract after months of talks.

India consumes about 31 million tonnes of LPG annually, importing roughly 65 percent of its needs to meet demand. Historically, more than 90...