India plans to buy up to a
quarter of its liquefied petroleum gas imports from the United
States in 2027, a move that would cut its reliance on the Middle
East and support efforts to secure a trade deal with Washington,
three sources with knowledge of the matter said.
New Delhi faced its worst LPG shortage earlier this year
after the Iran war and closure of the Strait of Hormuz disrupted
supplies. The government invoked emergency measures to divert
petrochemical feedstocks from industry to households, which use
LPG as cooking gas.
The world’s third-biggest oil importer and consumer bought
about 90% of its overall 21.85 million metric tons of LPG
imports from the Middle East in 2025. Imports accounted for
about 66% of India’s LPG consumption, according to government
data.
State refiners Indian Oil Corp, Bharat Petroleum
Corp and Hindustan Petroleum are expected to
issue tenders within one to two months for U.S. LPG supplies in
2027, the sources said, adding a delegation from the companies
is also likely to travel to the United States next month to
discuss sourcing.
India’s oil ministry and the three companies did not respond
to a Reuters email seeking comment.
Higher U.S. energy purchases could help India narrow its trade
surplus with Washington, a key demand from President Donald
Trump, as New Delhi pushes to complete a long-awaited trade deal
with Washington in the next three to four months.
India has pledged to increase U.S. energy purchases by $10
billion to $25 billion in the near future, and the two nations
have agreed to target $500 billion in bilateral trade by 2030.
New Delhi has already accelerated spot purchases from the
United States and other suppliers to offset reduced Middle East
supplies. U.S. LPG imports topped 1 million tons in June for the
first time and are likely to exceed India’s initial 2026
annual-contract target of 2.2 million tons, the sources said.
Lower supplies from the Middle East curtailed India’s LPG
consumption to about 14.7 million tons in January-June 2026,
down about 8% from a year earlier, while imports fell about 28%
to about 7.5 million tons, provisional government data showed.R
This year India’s LPG consumption is expected to decline to
30 million tons due to low supplies, one of the sources said.
But LPG imports could rise to about 20 million tons in 2027
as demand recovers to around 31 million tons, the source said.
“Diversification of LPG imports is being pursued to ensure
supply security and mitigate risks arising from regional
disruptions or geopolitical events,” junior oil minister Suresh
Gopi told lawmakers on Monday.