India signs first long-term US LPG import deal to boost energy security

In a major step towards strengthening India's energy security, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri on Monday announced that Indian public sector oil companies have, for the first time, signed a one-year deal to import liquefied petroleum gas (LPG) from the United States.The minister shared the development through a social media post on Monday, calling it a "historic first" for the country's LPG market.He stated, "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. In a significant development, Indian PSU oil companies have successfully concluded a 1-year deal for imports of around 2.2 MTPA LPG".— HardeepSPuri (@HardeepSPuri) Highlighting India's position as one of the largest and the fastest-growing LPG markets in the world, Puri said that the new agreement marks a significant milestone in the country's efforts to diversify its LPG sourcing.Live EventsAccording to the minister, the Indian PSU companies have concluded a contract to import around 2.2 million tonnes per annum (MTPA) of LPG for the contract year 2026.This volume represents close to 10 per cent of India's annual LPG imports and will be sourced from the US Gulf Coast. He noted that this will be the first structured long-term contract involving US LPG for the Indian market.Puri explained that the purchase has been benchmarked to Mount Belvieu, a key pricing point for global LPG trade.He added that teams from Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) had visited the United States in recent months to hold discussions with major American producers, which have now been successfully concluded.The minister also highlighted the government's commitment to ensuring affordable LPG for Indian households, particularly for women benefitting from the Pradhan Mantri Ujjwala Yojana.He pointed out that even as global LPG prices surged by more than 60 per cent last year, Prime Minister Narendra Modi ensured that Ujjwala consumers continued to pay only Rs 500-550 per cylinder, against an actual cost of over Rs 1,100.To shield consumers from international price shocks, the Government of India absorbed a burden of over Rs 40,000 crore during the year.He also shared that the new US import deal reinforces the government's ongoing efforts to secure reliable and affordable energy supplies for the people of the country.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onIndia US LPG import dealEnergy securityLiquefied petroleum gasHardeep Singh PuriLPG sourcing diversificationIndian oil companiesPrime Minister Ujjwala Yojanaaffordable LPG for householdshindustan petroleum corporation limitedindian oil corporation limited (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onIndia US LPG import dealEnergy securityLiquefied petroleum gasHardeep Singh PuriLPG sourcing diversificationIndian oil companiesPrime Minister Ujjwala Yojanaaffordable LPG for householdshindustan petroleum corporation limitedindian oil corporation limited(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless