Negotiations, which take place against the background of the American tariff on Indian goods, support the goal set by both countries at the beginning of this year to increase its energy trade to $ 20 billion. This would include India importing liquefied oil (LPG) from the US through term contracts and increasing oil imports and liquefied natural gas (LNG).
“The Indian OMC is together with at least a dozen LPG suppliers in the US. Negotiations have been supplied from January next year and the discussion is going well,” one of the three people said. The person added that although the agreements can be signed separately, since the conversations take place at a combined level, the nature of the shops would be largely the same.
Targa, Oneok
Some of the main US LPG suppliers are Targa Resources and Enterprise Products and Oneok based in Texas. Questions by the Ministry of Union of Petroleum and Commerce, Indian oil marketing companies and US LPG suppliers were unanswered.
India traditionally imports most of its LPGs from Western Asian countries, including Qatar, SAE and Saudi Arabia through long -term contracts, while other main import countries LPG get it from the US. So far, the US has supplied India LPG in small volumes through spot stores, the first time that Indian companies may have a term agreement with US suppliers. On the other hand, China was the main buyer of LPG from the USA.
In India, LPG is primarily used for residential cooking, followed by commercial and industrial purposes. India imported LPG worth $ 12.47 billion in FY25, 19.85% greater than $ 10.42 billion in the previous year. According to Ken Research since December 2024, the Indian LPG market has been awarded $ 15 billion, with growth supported by the emphasis on the use of LPG for cooking purposes through Pradhan Mantri Ujjwala Yojana.
Thaw?
Interviews with American companies are considered to be indicating melting in ties between them, although interviews about a bilateral trade agreement remain active, but are stuck on unsolvable issues such as dairy products and agriculture. US President Donald Trump also warned that India could face sanctions if he continued to buy oil products from Russia.
“India is a huge LPG importer. The US is a large LPG producer, which is produced as natural gas liquids together with slate gas. The US can therefore be an important LPG supplier to India,” said Prasist, head of vice president and co-group, company assessment. India.
In an effort to diversify import sources in the middle of geopolitical tension and regional instability in West Asia, Indian buyers already create new ties. The State BPCL has signed an annual agreement with the Norwegian Equinor to ensure 550 kilotons per year of propane and butane, reducing its dependence on the West Asian countries. Reuters said last month that India was planning to acquire approximately 10% of its imports from the US as part of a wider effort to increase energy purchases to reduce the Washington trading gap.
Trade war
In March this year, when the tariff war spread between the US and China, the Drewry Maritime Counseling report suggested that if the US trade was escalating, the Saudi contractual prices could attract the premium, and China probably involved the Middle East suppliers and forcing India to diversify its import resources, including the US.
LPG used in India includes 60% butane and 40% propane. West Asian exports are more suitable because they are primarily controlled by butane because their production LPG is a by -product of oil processing. On the other hand, American reserves are primarily controlled by propane because LPG production in the US is a by -product of natural gas processing. According to Drewry report, Butane was 52% of Indian LPG imports in 2024.
“India can get the required propane from the US that would be 40-50% of the composition and butane can continue to be imported from the Gulf countries,” the executive said on the condition of anonymity
LPG land
Since April 1, 2025, three state marketing companies have dominated the LPG market in India, together with 32.97 Crore Active LPG customers in the domestic category, which operates 25,542 LPG distributors. Oil cell data (PPAC) shows that these companies have sold nearly 31.2 million tonnes of LPG in FY25, of which about 88.3%were sold in the home sector.
Ajay Srivastava, Former Indian Trade Service Officer and Founder of the Global Trade Research Initiative (Gtri), Said, “Those Engaging with US Oil Firms for the Deal Should Ensure Certaints of Supply Various Countries, But Currently Lacks Adequate Production of Petroleum Products and LNG.
However, a former government official asking for anonymity said, “This is a move, because such agreements come with the consent of the government and this step could help relieve tensions and facilitate some points on the sufferers.”
Vessel dynamics
Drewry reported reported that the increase in imports of US LPG would also affect LPG ships that India employing to import the product. India usually uses LPG medium gas carriers (MGC) because the Earth has low storage capacity and most terminals are unable to satisfy very large gas carriers (VLGC), but modernization of infrastructure and changing supplier countries can lead to changes in VLGC samples in India, India, USA.
Indian imports of energy from the US, largely rough this year has witnessed an increase. India has already assured the US to increase energy ties and increase imports. After the meeting of Prime Minister Narendra Modi and Trump last month in Washington, Washington, he said that Foreign Minister Vikram Misri said India aimed to increase his purchases of US energy in the near future. During a visit to the Prime Minister Narendry Modi in February, US President Donald Trump said that both countries have achieved “important” energy agreements that would make the US one of the leading suppliers of oil and gas to India, “hopefully the number one supplier”.
The Mint previously said that oil and gas imports appear as a key factor for the ongoing bilateral trade interviews between the US and India and plans to increase the share of intermediates of Western Texas or the WTI oil in imports in the country, which could even mean the quota for American raw.
With me
- India is discussing gas supplies with American companies since 2026. The aim of this step is to diversify the imports of India for energy energy beyond its West Asian suppliers. This is the first time that India can have a long -term LPG agreement with the US. Agreements could help thaw relations in the middle of the ongoing trade in India. LPG Sourcing from the US will affect contemporary Indian shipping logistics.
(Tagstotranslate) lpg
