{"id":1457,"date":"2025-11-18T05:01:55","date_gmt":"2025-11-18T05:01:55","guid":{"rendered":"https:\/\/newsraise.com\/in\/?p=1457"},"modified":"2025-11-18T05:01:55","modified_gmt":"2025-11-18T05:01:55","slug":"india-us-sign-landmark-lpg-deal-to-boost-supply","status":"publish","type":"post","link":"https:\/\/newsraise.com\/in\/2025\/11\/18\/india-us-sign-landmark-lpg-deal-to-boost-supply\/","title":{"rendered":"India-US Sign Landmark LPG Deal to Boost Supply"},"content":{"rendered":"\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"9fece8afa224fd09e54b043d0febfb58\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- NR ATF -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-8898941184964366\"\r\n     data-ad-slot=\"4839033563\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<h2 data-start=\"253\" data-end=\"656\"><em>India has taken a significant step by signing its first structured, long-term agreement to import <a href=\"https:\/\/newsraise.com\/in\/2021\/05\/27\/how-to-check-if-you-are-receiving-the-lpg-subsidy-or-not\/\">liquefied petroleum gas (LPG)<\/a> from the United States. <\/em><\/h2>\n<p data-start=\"253\" data-end=\"656\">The landmark deal, announced by <a href=\"https:\/\/newsraise.com\/in\/2025\/08\/05\/is-ethanol-blended-e20-petrol-affecting-vehicles-government-vouches-for-its-use\/\">Union Petroleum and Natural Gas Minister Hardeep Singh Puri<\/a>, is aimed at diversifying supply sources at a time when global energy markets are becoming increasingly unpredictable.<\/p>\n<p data-start=\"658\" data-end=\"967\">Under the agreement, Indian state-run oil marketing companies will import <strong data-start=\"732\" data-end=\"778\">around 2.2 million tonnes per annum (MTPA)<\/strong> of LPG from the <a href=\"https:\/\/newsraise.com\/in\/2025\/10\/28\/amazon-to-lay-off-30000-employees-in-major-cost-cutting-push\/\">US Gulf Coast<\/a> for the contract year 2026. This quantity amounts to nearly <strong data-start=\"869\" data-end=\"906\">10% of India\u2019s annual LPG imports<\/strong>, making it a major shift in the country\u2019s sourcing strategy.<\/p>\n<h3 data-start=\"969\" data-end=\"1015\"><strong data-start=\"973\" data-end=\"1015\">A First-of-Its-Kind Contract for India<\/strong><\/h3>\n<p data-start=\"1017\" data-end=\"1410\">This agreement marks India\u2019s <strong data-start=\"1046\" data-end=\"1088\">first structured LPG purchase contract<\/strong> with the United States and is benchmarked to <strong data-start=\"1134\" data-end=\"1150\">Mont Belvieu<\/strong>, the key <a href=\"https:\/\/newsraise.com\/in\/2025\/10\/28\/amazon-to-lay-off-30000-employees-in-major-cost-cutting-push\/\">US pricing hub for LPG<\/a>. A dedicated team from Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL), and Hindustan Petroleum Corporation Ltd (HPCL) held extensive discussions with leading American producers before finalizing the deal.<\/p>\n<p data-start=\"1412\" data-end=\"1700\">Calling it a \u201chistoric first,\u201d <a href=\"https:\/\/newsraise.com\/in\/2025\/08\/05\/is-ethanol-blended-e20-petrol-affecting-vehicles-government-vouches-for-its-use\/\">Minister Puri<\/a> highlighted that one of the world\u2019s <a href=\"https:\/\/newsraise.com\/in\/2021\/05\/27\/how-to-check-if-you-are-receiving-the-lpg-subsidy-or-not\/\">fastest-growing LPG markets<\/a> is formally tapping US suppliers. According to him, expanding and diversifying India\u2019s sourcing options is crucial to providing citizens access to <strong data-start=\"1668\" data-end=\"1699\">affordable and reliable LPG<\/strong>.<\/p>\n<h3 data-start=\"1702\" data-end=\"1736\"><strong data-start=\"1706\" data-end=\"1736\">Why This Deal Is Important<\/strong><\/h3>\n<p data-start=\"1738\" data-end=\"2085\">India is currently the <strong data-start=\"1761\" data-end=\"1805\">second-largest LPG consumer in the world<\/strong>, driven by rapid household adoption and the ongoing expansion of the <strong data-start=\"1875\" data-end=\"1893\">Ujjwala Yojana<\/strong>, which offers subsidized LPG connections to low-income families. As demand grows, the country now imports more than <strong data-start=\"2010\" data-end=\"2047\">half of its total LPG requirement<\/strong>, primarily from <a href=\"https:\/\/newsraise.com\/in\/2025\/10\/28\/amazon-to-lay-off-30000-employees-in-major-cost-cutting-push\/\">West Asian producers.<\/a><\/p>\n<p data-start=\"2087\" data-end=\"2139\">By adding the US as a major supplier, India aims to:<\/p>\n<ul>\n<li data-start=\"2143\" data-end=\"2187\">Reduce dependence on traditional markets<\/li>\n<li data-start=\"2190\" data-end=\"2225\">Improve supply-chain resilience<\/li>\n<li data-start=\"2228\" data-end=\"2281\">Protect consumers from extreme price fluctuations<\/li>\n<li data-start=\"2284\" data-end=\"2325\">Broaden long-term energy partnerships<\/li>\n<\/ul>\n<p data-start=\"2327\" data-end=\"2769\">The focus on diversification has become especially important given recent global price instability. Puri noted that even as <a href=\"https:\/\/newsraise.com\/in\/2021\/05\/27\/how-to-check-if-you-are-receiving-the-lpg-subsidy-or-not\/\">international LPG prices<\/a> surged by more than <strong data-start=\"2496\" data-end=\"2513\">60% last year<\/strong>, Ujjwala beneficiaries continued to pay only <strong>INR 500\u2013550<\/strong> per cylinder. Actual market prices had reached nearly <strong>INR 1100<\/strong>, with the government absorbing the difference &#8211; amounting to more than <strong>INR 40,000 crore<\/strong> in subsidies to shield vulnerable households.<\/p>\n<h3 data-start=\"2771\" data-end=\"2813\"><strong data-start=\"2775\" data-end=\"2813\">Strengthening India-US Energy Ties<\/strong><\/h3>\n<p data-start=\"2815\" data-end=\"3099\">The new deal is expected to significantly enhance <strong data-start=\"2865\" data-end=\"2896\">India\u2013US energy cooperation<\/strong> and may open the door for additional long-term contracts in the coming years. For Indian oil marketing companies, sourcing LPG from a new geography reduces risk and introduces greater pricing stability.<\/p>\n<p data-start=\"3101\" data-end=\"3444\">As LPG usage continues to rise across rural and urban regions, the government maintains that expanding and diversifying supply sources will remain a strategic priority. This agreement is seen as a key step toward ensuring that millions of Indian homes continue receiving <strong data-start=\"3372\" data-end=\"3413\">secure, affordable, and uninterrupted<\/strong> LPG access in the years ahead.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>India has taken a significant step by signing its first structured, long-term agreement to import liquefied petroleum gas (LPG) from the United States. The landmark&#8230;<\/p>\n","protected":false},"author":4,"featured_media":1458,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[299],"tags":[942,773,938,941,646,944,940,945,939,943],"class_list":["post-1457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-hardeep-singh-puri-lpg-announcement","tag-india-energy-security","tag-india-lpg-import-deal","tag-india-lpg-imports-2026","tag-india-us-energy-cooperation","tag-lpg-diversification-india","tag-mont-belvieu-benchmark-lpg","tag-omc-lpg-sourcing-strategy","tag-structured-lpg-contract-india","tag-us-gulf-coast-lpg-supply","entry"],"_links":{"self":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/comments?post=1457"}],"version-history":[{"count":1,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1457\/revisions"}],"predecessor-version":[{"id":1459,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1457\/revisions\/1459"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media\/1458"}],"wp:attachment":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media?parent=1457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/categories?post=1457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/tags?post=1457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}