India signed the first major LPG import agreement with the United States

In a historic development, the Minister of Petroleum and Natural Gas, Mr. Hardeep Singh Puri, announced on November 17, 2025, that Indian public sector oil companies have successfully completed a one-year structured contract to import approximately 2.2 million tonnes per year of LPG from the U.S. Gulf Coast for the year 2026.

• In a historic development, the Minister of Petroleum and Natural Gas, Mr. Hardeep Singh Puri, announced on November 17, 2025, that Indian public sector oil companies have successfully completed a one-year structured contract to import approximately 2.2 million tonnes per year of LPG from the U.S. Gulf Coast for the contract year 2026.
• This is about ten percent of India’s annual LPG imports and is the first such structured U.S. LPG contract for the Indian market.
• The Minister described this decision as a historic development and said that one of the world’s largest and fastest-growing LPG markets has now opened up for the United States.
• This announcement comes at a time when India is facing a 50% tariff on its exports to the U.S., which also includes a 25% penalty for purchasing Russian oil.
• The Minister said that India is continuously working to ensure affordable and reliable LPG supplies by diversifying its source options.

Major government companies

• As part of this effort, a team of officials from Indian Oil, Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) visited the United States from July 21 to 24, 2025, and held discussions with major U.S. producers.
• These discussions, based on Mont Belvieu as the benchmark for LPG procurement, concluded successfully with the finalization of the contract.
• Despite more than a 60 percent increase in global LPG prices last year, Ujjwala beneficiaries continued to receive cylinders at a subsidized price of around ₹500-550, while the actual cost was over ₹1100.
• The Government of India absorbed this burden and spent more than ₹40,000 crore last year to protect families—especially mothers and sisters—from the impact of rising international LPG prices.

Global oil reserves

• As of 2025, major exporters of LPG (Liquefied Petroleum Gas) include the United States, Qatar, Saudi Arabia, and the United Arab Emirates.
• The U.S. has become a major exporter due to its shale gas production, while Middle Eastern countries such as Qatar, Saudi Arabia, and the UAE remain major suppliers due to their vast oil and gas reserves.
• Russia, Iran, and Qatar will have the largest natural gas reserves (including LPG) by 2025, controlling a significant portion of the world’s supply.
• Russia holds the largest reserves, estimated at more than 1,688 trillion cubic feet, which is about 20% of the global total.