‘Historic first’: India seals first LPG pact with US; 2.2 MTPA deal to meet about 10% of New Delhi’s total import needs
Describing the development as a “historic first”, he said Indian public sector oil companies had secured a contract to source LPG from the US Gulf Coast.
The update was shared in a social media post.Puri said the arrangement, involving around 2.2 million tonnes per annum (MTPA) of LPG for the contract year 2026, reflects India’s growing emphasis on diversifying its energy supply chain.The minister noted that the volume accounts for nearly 10 per cent of India’s yearly LPG imports.He added that this marks the first long-term structured deal between Indian PSUs and US suppliers.Calling India “one of the largest and the world’s fastest-growing LPG markets”, Puri said the buy has been benchmarked to Mount Belvieu, a major global pricing hub.
He also revealed that teams from IOCL, BPCL and HPCL had held discussions with American producers in recent months before finalising the agreement.The minister reiterated the government’s efforts to ensure affordable access to LPG, especially for Pradhan Mantri Ujjwala Yojana beneficiaries.
He pointed out that even as global LPG prices rose by over 60 per cent last year, Ujjwala consumers paid only Rs 500–550 per cylinder despite actual costs crossing Rs 1,100.
The Centre, he said, absorbed more than Rs 40,000 crore to shield consumers from price shocks.Puri added that the new US import deal further strengthens India’s energy security and supports the government’s goal of maintaining stable and affordable LPG supplies for households across the country.
