Sources say that India will import up to a quarter of its LPG from the US by 2027
Three sources familiar with the matter have confirmed that India intends to purchase up to one quarter of its liquefied gas imports from the United States by 2027. This'move' would reduce India's dependence on the Middle East, and help it to achieve a deal with Washington.
New Delhi experienced its worst LPG shortage in the first half of this year, after the Iran War and the closure of the Strait of Hormuz disrupted supply. The government took emergency measures to divert feedstocks for petrochemicals from industries to households that use LPG to cook.
In 2025, the Middle East was the third largest oil importer in terms of consumption and imports. According to data from the government, imports accounted about 66% for India's total LPG consumption.
Sources?said that state refiners - Indian Oil Corp, Bharat Petroleum Corp, and Hindustan Petroleum - are expected to tender within one to two weeks for U.S. LPG in 2027. A delegation of the companies will also be likely to travel to America next month to discuss sourcing.
India's oil minister?and three companies didn't respond to an email requesting comment. The President Donald Trump has made it clear that India's trade surplus with Washington could be reduced by increasing its U.S. energy purchase.
India has committed to increasing U.S. energy purchase by $10 billion to 25 billion dollars in the near future. The two nations have also agreed to aim for $500 billion of bilateral trade by 2030.
New Delhi has already increased its spot purchases to compensate for the reduced Middle East supply. U.S. LPG imports exceeded 1 million tons for the first time in June and are likely?to exceed India's initial annual contract target of 2.2 millions tons by 2026, according to the sources.
India's consumption of LPG fell by about 8% in the period January-June 2026 due to lower supplies from the Middle East, while imports dropped about 28%, to about 7.5 million tons, according to preliminary government data.
One of the sources stated that India's LPG demand is expected to drop to 30 million tonnes this year due to the low supply.
Sources said that LPG imports would?rise? to 20 million tons by 2027, as the?demand? recovers? to 31 million tons.
Suresh Gopi, junior oil minister, told lawmakers that diversification of LPG imports was being pursued in order to secure supply and reduce risks from geopolitical or regional disruptions.
(source: Reuters)
