India plans to source up to 25% of LPG imports from US in 2027
India plans to source up to a quarter of its LPG imports from the United States in 2027, according to Reuters. The shift follows supply disruptions in the Middle East and could also support trade talks with Washington.
India plans to source up to a quarter of its liquefied petroleum gas (LPG) imports from the United States in 2027 as it looks to reduce its dependence on the Middle East, strengthen energy security and support ongoing trade negotiations with Washington, reported news agency Reuters.
The move comes after India faced its worst LPG shortage earlier this year when the Iran conflict and the closure of the Strait of Hormuz disrupted supplies from the Middle East.
The government was forced to divert LPG feedstock meant for industries to households, where the fuel is widely used for cooking.
WHY INDIA IS LOOKING TO THE US
India, the world's third-largest importer and consumer of oil, currently depends heavily on the Middle East for its LPG needs.
Around 90% of the country's 21.85 million metric tonnes of LPG imports in 2025 came from the region, while imports met nearly two-thirds of domestic LPG demand, according to government data mentioned in the report.
To diversify supplies, state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) are expected to issue tenders within the next one to two months to procure US LPG supplies for 2027, the report said.
A delegation from the three companies is also likely to visit the United States next month to hold discussions with suppliers, according to the sources.
MOVE MAY ALSO SUPPORT INDIA-US TRADE TALKS
The planned increase in US energy purchases is also expected to support efforts to conclude a long-awaited India-US trade agreement.
As per the report, higher imports of US energy could help narrow India's trade surplus with the United States, one of the key demands of US President Donald Trump.
India has already committed to increasing its purchases of US energy by $10 billion to $25 billion in the near future. Both countries have also set a target of raising bilateral trade to $500 billion by 2030.
LPG IMPORTS FROM US ALREADY RISING
India has already stepped up spot purchases of LPG from the United States and other countries after supplies from the Middle East declined.
Imports of US LPG crossed 1 million tonnes in June for the first time and are likely to exceed India's initial annual contract target of 2.2 million tonnes for 2026.
Lower supplies from the Middle East also affected domestic consumption. Government data cited by Reuters showed that India's LPG consumption fell about 8% year-on-year to around 14.7 million tonnes during January-June 2026, while imports declined about 28% to around 7.5 million tonnes.
One of the sources told Reuters that India's total LPG consumption is expected to fall to around 30 million tonnes this year because of supply constraints. However, demand is expected to recover to around 31 million tonnes in 2027, with imports rising to nearly 20 million tonnes.
The government's push to diversify LPG imports was also reiterated in Parliament.
"Diversification of LPG imports is being pursued to ensure supply security and mitigate risks arising from regional disruptions or geopolitical events," Junior Oil Minister Suresh Gopi told lawmakers on Monday, according to Reuters.
India plans to source up to a quarter of its liquefied petroleum gas (LPG) imports from the United States in 2027 as it looks to reduce its dependence on the Middle East, strengthen energy security and support ongoing trade negotiations with Washington, reported news agency Reuters.
The move comes after India faced its worst LPG shortage earlier this year when the Iran conflict and the closure of the Strait of Hormuz disrupted supplies from the Middle East.
The government was forced to divert LPG feedstock meant for industries to households, where the fuel is widely used for cooking.
WHY INDIA IS LOOKING TO THE US
India, the world's third-largest importer and consumer of oil, currently depends heavily on the Middle East for its LPG needs.
Around 90% of the country's 21.85 million metric tonnes of LPG imports in 2025 came from the region, while imports met nearly two-thirds of domestic LPG demand, according to government data mentioned in the report.
To diversify supplies, state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) are expected to issue tenders within the next one to two months to procure US LPG supplies for 2027, the report said.
A delegation from the three companies is also likely to visit the United States next month to hold discussions with suppliers, according to the sources.
MOVE MAY ALSO SUPPORT INDIA-US TRADE TALKS
The planned increase in US energy purchases is also expected to support efforts to conclude a long-awaited India-US trade agreement.
As per the report, higher imports of US energy could help narrow India's trade surplus with the United States, one of the key demands of US President Donald Trump.
India has already committed to increasing its purchases of US energy by $10 billion to $25 billion in the near future. Both countries have also set a target of raising bilateral trade to $500 billion by 2030.
LPG IMPORTS FROM US ALREADY RISING
India has already stepped up spot purchases of LPG from the United States and other countries after supplies from the Middle East declined.
Imports of US LPG crossed 1 million tonnes in June for the first time and are likely to exceed India's initial annual contract target of 2.2 million tonnes for 2026.
Lower supplies from the Middle East also affected domestic consumption. Government data cited by Reuters showed that India's LPG consumption fell about 8% year-on-year to around 14.7 million tonnes during January-June 2026, while imports declined about 28% to around 7.5 million tonnes.
One of the sources told Reuters that India's total LPG consumption is expected to fall to around 30 million tonnes this year because of supply constraints. However, demand is expected to recover to around 31 million tonnes in 2027, with imports rising to nearly 20 million tonnes.
The government's push to diversify LPG imports was also reiterated in Parliament.
"Diversification of LPG imports is being pursued to ensure supply security and mitigate risks arising from regional disruptions or geopolitical events," Junior Oil Minister Suresh Gopi told lawmakers on Monday, according to Reuters.
India plans to source up to a quarter of its liquefied petroleum gas (LPG) imports from the United States in 2027 as it looks to reduce its dependence on the Middle East, strengthen energy security and support ongoing trade negotiations with Washington, reported news agency Reuters.
The move comes after India faced its worst LPG shortage earlier this year when the Iran conflict and the closure of the Strait of Hormuz disrupted supplies from the Middle East.
The government was forced to divert LPG feedstock meant for industries to households, where the fuel is widely used for cooking.
WHY INDIA IS LOOKING TO THE US
India, the world's third-largest importer and consumer of oil, currently depends heavily on the Middle East for its LPG needs.
Around 90% of the country's 21.85 million metric tonnes of LPG imports in 2025 came from the region, while imports met nearly two-thirds of domestic LPG demand, according to government data mentioned in the report.
To diversify supplies, state-owned fuel retailers Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) are expected to issue tenders within the next one to two months to procure US LPG supplies for 2027, the report said.
A delegation from the three companies is also likely to visit the United States next month to hold discussions with suppliers, according to the sources.
MOVE MAY ALSO SUPPORT INDIA-US TRADE TALKS
The planned increase in US energy purchases is also expected to support efforts to conclude a long-awaited India-US trade agreement.
As per the report, higher imports of US energy could help narrow India's trade surplus with the United States, one of the key demands of US President Donald Trump.
India has already committed to increasing its purchases of US energy by $10 billion to $25 billion in the near future. Both countries have also set a target of raising bilateral trade to $500 billion by 2030.
LPG IMPORTS FROM US ALREADY RISING
India has already stepped up spot purchases of LPG from the United States and other countries after supplies from the Middle East declined.
Imports of US LPG crossed 1 million tonnes in June for the first time and are likely to exceed India's initial annual contract target of 2.2 million tonnes for 2026.
Lower supplies from the Middle East also affected domestic consumption. Government data cited by Reuters showed that India's LPG consumption fell about 8% year-on-year to around 14.7 million tonnes during January-June 2026, while imports declined about 28% to around 7.5 million tonnes.
One of the sources told Reuters that India's total LPG consumption is expected to fall to around 30 million tonnes this year because of supply constraints. However, demand is expected to recover to around 31 million tonnes in 2027, with imports rising to nearly 20 million tonnes.
The government's push to diversify LPG imports was also reiterated in Parliament.
"Diversification of LPG imports is being pursued to ensure supply security and mitigate risks arising from regional disruptions or geopolitical events," Junior Oil Minister Suresh Gopi told lawmakers on Monday, according to Reuters.
