India has signed a contract to import Liquefied Petroleum Gas (LPG) from America. Three American companies have signed agreements with several Indian state-owned enterprises in this regard. News agency Reuters first brought this contract issue to light. On Monday, Union Petroleum Minister Hardeep Singh Puri announced this contract by posting on his X handle.
The Union Minister wrote in his X handle post, "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." The Union Petroleum Minister also informed that 10 per cent of the LPG that India imports will come from America. 2.2 million tons of LPG will be imported in 2026.
Also Read | Business groups ask Supreme Court to pause California’s climate reporting law
Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited will import this LPG from America. Representatives of these three state-owned enterprises recently went to America. It has been learned that this contract was made after discussions with the country's leading LPG-producing companies. American companies Chevron, Phillips 66, and Total Energies will supply LPG to India. It will be sent to India through 48 Very Large Gas Carriers.
A large portion of the LPG used in India is imported from abroad. In 2024, India imported 65 per cent of its required LPG from outside. India mainly buys LPG from West Asian countries. America's name has now been added to that list.
Also Read | Godrej Consumer acquires Muuchstac in ₹450-crore mega deal
Discussions are ongoing regarding a trade agreement between India and America. The Trump administration has imposed high tariffs on Indian goods for buying oil from Russia. It has continuously increased pressure on India to stop buying oil from Russia. In this situation, experts believe this LPG-related contract will further pave the way for a trade agreement between India and America.
