A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Bouguenais near Nantes, France, November 14, 2022.
India intends to increase energy imports from the U.S. as part of a broader plan to narrow its trade surplus with Washington. The joint tender sought delivery of about 48 very-large gas carriers, equal to roughly 2 million metric tons of LPG scheduled for arrival in 2026. The tenders permitted suppliers to deliver LPG of any origin for one out of every four awarded cargoes.
LPG, a blend of propane and butane commonly used as cooking fuel, is primarily imported by Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum Corp. These state retailers distribute LPG to households at regulated prices. The exact number of cargoes awarded to the individual companies and the specific pricing terms were not immediately available. Chevron, Phillips 66, and TotalEnergies Trading SA did not immediately reply to emailed requests for comment.
India plans to obtain about 10% of its cooking gas imports from the U.S. beginning in 2026, as previously reported in July. In the current year, India also purchased several U.S. LPG cargoes by taking advantage of favorable market conditions. During this period, China reduced purchases of U.S. LPG due to its tariff-related trade issues with Washington, which created temporary market opportunities for Indian buyers.
In April, it was reported that India considered removing import taxes on selected U.S. products, including LPG, as part of ongoing trade discussions. Higher U.S. LPG imports are expected to help India diversify its supply sources and reduce dependence on traditional suppliers in the Middle East. Government data showed that in 2024, India imported about 65% of its total LPG consumption of 31 million tons. State refiners imported approximately 90% of their 20.4 million tons under long-term agreements with producers such as the UAE, Qatar, Kuwait, and Saudi Arabia.
Separately, a Ukrainian drone and missile strike on Friday affected operations at a major Russian oil export facility, briefly suspending shipments from the Black Sea port of Novorossiysk. The incident caused temporary disruptions to regional energy logistics.
In response to India’s diversification plans, Saudi Aramco, a key Middle Eastern supplier, reduced its official selling prices for propane and butane to their lowest level in at least two years. This adjustment reflects shifting market expectations as India increases its engagement with additional global LPG suppliers.
