India Signs Historic LPG Import Deal with the US
Union Petroleum minister Hardeep Singh puri announced a landmark agreement between india and the United States.
This is the first-ever long-term contract under which india will import large volumes of LPG directly from the US.
The deal signals a major shift in India’s energy partnership strategy and marks a strengthening of bilateral energy trade.
Major LPG Import Commitment for 2026
Under the agreement, india will import 2.2 million tonnes per annum (MTPA) of LPG starting in 2026.
The contract has been signed by India’s state-owned oil companies, ensuring long-term supply security.
This import volume is significant and reflects India’s rising domestic demand for clean cooking fuel.
The deal also enhances diversification of India’s LPG import sources beyond traditional suppliers.
10% of India’s Total Annual LPG Imports
The contracted 2.2 MTPA accounts for approximately 10% of India's total yearly LPG imports.
India is among the world’s largest consumers of LPG due to extensive household usage.
With demand steadily rising, securing a stable and predictable international supply has become crucial.
The agreement reduces dependence on Middle Eastern suppliers and broadens India’s energy supply chain.
Relief Expected for Ujjwala Beneficiaries
Minister puri stated that this deal will bring relief to Pradhan Mantri Ujjwala Yojana (PMUY) consumers.
Increased supply and diversified sourcing are expected to help maintain or reduce LPG prices.
LPG availability for low-income households—who receive subsidized cylinders under Ujjwala—could improve.
The government aims to make clean cooking fuel more accessible and affordable for millions of families.
Strengthening India-US Energy Partnership
The deal reflects a deepening of India–US strategic energy cooperation.
It underscores mutual interests in long-term energy collaboration.
The agreement is seen as a step toward securing India’s future energy needs while boosting bilateral trade.
India continues to prioritize energy diversification to ensure sustainability and price stability.
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