Indian state-owned oil refining companies have signed their first long-term agreement with the United States to import 2.2 million tons of liquefied petroleum gas (LPG) next year — a strategic move to strengthen energy ties amid New Delhi's desire to conclude a trade agreement with Washington. This was reported by Bloomberg, writes UNN.
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Leading refiners Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp. jointly announced a tender for the purchase of American LPG supplies. This agreement will allow the world's second-largest LPG consumer to receive almost a tenth of its imported volumes from the US Gulf Coast, said Indian Oil Minister Hardeep Puri on the social network X.
It is noted that before the agreement was concluded, representatives of the three refineries visited the United States for negotiations with local producers. Minister Puri added that supply prices will be set at the Mont Belvieu benchmark.
According to the publication, this will be a significant jump compared to last year, when the US provided less than 0.6% of India's LPG imports. According to Kpler, the country's largest suppliers are Qatar, UAE, and Saudi Arabia.
New Delhi is negotiating a trade agreement with the US to reduce tariffs imposed by US President Donald Trump in response to its purchases of Russian oil. Sanctions have already affected more than half of Indian goods exported to the American market.
According to traders familiar with the matter, Phillips 66 will supply two shipments per month under the long-term contract, while Chevron and TotalEnergies will supply one each.
India's LPG consumption has grown by 74% over the past decade thanks to Prime Minister Narendra Modi's campaign to help poor households switch to cleaner cooking fuel.
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