India Signs Its First Major LPG Import Agreement with the United States

In a landmark move aimed at diversifying its energy supply chain, India has signed its first major agreement to import 2.2 million tonnes of liquefied petroleum gas (LPG) from the United States. The volume accounts for nearly 10% of India’s total annual LPG imports, marking a strategic expansion of sourcing beyond the Middle East.

The deal, facilitated through Indian state-owned oil companies, will secure LPG deliveries beginning in 2026 from the U.S. Gulf Coast. Energy Minister Hardeep Singh Puri described the agreement as a “historic milestone” for India’s energy security, though analysts note that the decision carries both strategic and economic implications.

The U.S. LPG typically arrives at a higher landed cost compared to supplies from Saudi Arabia, Qatar, and the UAE. However, the agreement is being viewed through the lens of strengthening bilateral trade ties, especially as New Delhi and Washington continue discussions on tariffs, market access, and broader strategic cooperation.

Industry observers say this deal could reshape India’s long-term energy sourcing strategy and may influence forthcoming India–U.S. trade negotiations.