India’s state-owned refiners are moving to secure a larger share of US LPG imports by 2027, aiming to diversify supply sources, bolster energy security, and strengthen trade ties with Washington amid regional uncertainties.
India’s state-owned refiners are preparing to deepen their exposure to US liquefied petroleum gas as New Delhi looks to trim dependence on West Asian supply routes and strengthen its bargaining position with Washington. According to people familiar with the discussions, the government has asked Indian Oil, Bharat Petroleum and Hindustan Petroleum to secure at least 15% of the country’s LPG imports for 2027 through term contracts with US suppliers.
That would build on the first structured US LPG deal agreed last year, when the three refiners signed a one-year contract for about 2.2 million tonnes in 2026, or roughly 10% of India’s annual import requirement. Industry reports at the time said the deal was designed to diversify supply, improve energy security and create more room in bilateral trade talks with the US, while also providing the Indian market with a new pricing reference tied to Mont Belvieu.
Executives from the three companies are now in the US to negotiate further cargoes, the Business Standard reported, citing people briefed on the matter. The refiners are expected to combine their requirements in a joint tender after reviewing possible suppliers and pricing, a structure that would give them more leverage in talks and broaden the pool of exporters able to serve the Indian market.
The push comes as India remains exposed to disruptions in the Strait of Hormuz and uncertainty over stalled US-Iran diplomacy, both of which could affect cooking gas supplies. Consumption of LPG fell by more than 16% year on year to 2.35 million tonnes last month, as shortages prompted some households and businesses to switch to piped natural gas and, in some cases, dirtier fuels such as biomass and kerosene. For the government, more US LPG could ease that pressure while also helping narrow India’s trade surplus with the US as trade negotiations continue.
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