India signs first structured LPG import contract with the US, about 2.2 MTPA for 2026
Petroleum Minister Hardeep Singh Puri announced on 17 November 2025 that Indian PSU oil companies have concluded a one-year structured contract to import about 2.2 MTPA of LPG from the US Gulf Coast for contract year 2026.
Summary
The US LPG contract, India's first structured LPG deal with the United States, covers close to 10% of India's annual LPG imports. It was negotiated by IndianOil, BPCL and HPCL, whose officials visited the US in July 2025, and uses Mount Belvieu as the pricing benchmark. Hardeep Singh Puri said the deal diversifies sourcing for energy security; he added that Ujjwala beneficiaries paid about ₹500â550 per cylinder last year against an actual cost above ₹1,100, with the government spending over ₹40,000 crore to absorb the difference.
Key facts
- Volume
- ~2.2 MTPA from US Gulf Coast
- Period
- Contract year 2026 (one year)
- Share
- ~10% of India's annual LPG imports
- Buyers
- IndianOil, BPCL, HPCL
- Benchmark
- Mount Belvieu
- Significance
- First structured US LPG contract for India
Practice MCQs 2 questions
Under India's first structured LPG import contract with the US (announced November 2025), roughly how much LPG will be imported in contract year 2026?
Show answer
Correct answer: C â 2.2 MTPA
PSU oil companies will import about 2.2 MTPA of LPG from the US Gulf Coast, close to 10% of India's annual LPG imports.
Which pricing benchmark is used for India's 2026 LPG import contract with the US?
Show answer
Correct answer: B â Mount Belvieu
The discussions with US producers were based on Mount Belvieu as the benchmark for LPG purchases. Saudi CP is the usual Middle East benchmark; Henry Hub is for natural gas.