In a significant move to enhance India's energy security, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri revealed that Indian public sector oil firms have, for the first time, finalized a one-year agreement to import liquefied petroleum gas (LPG) from the United States.

The minister announced the update in a social media post, referring to it as a "historic first" for the nation's LPG market.

He proclaimed an unprecedented milestone! One of the biggest and fastest-growing LPG markets in the world is now accessible to the United States. In our effort to deliver safe, cost-effective LPG supplies to the citizens of India, we have been broadening our LPG sourcing.

In a major advancement, Indian PSU oil firms have finalized a 1-year agreement for the import of approximately 2.2 MTPA LPG.

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Emphasizing India's status as one of the largest and rapidly expanding LPG markets globally, Puri stated that the new agreement represents a crucial achievement in the nation's initiatives to diversify its LPG supply sources.

The minister stated that Indian PSU firms have finalized an agreement to import approximately 2.2 million tonnes per annum (MTPA) of LPG for the contract year 2026.

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This amount accounts for nearly 10 percent of India's yearly LPG imports and will be obtained from the US Gulf Coast. He mentioned that this will mark the first organized long-term agreement concerning US LPG for the Indian market.

Puri stated that the acquisition has been referenced to Mount Belvieu, an essential pricing point for international LPG commerce.

 

He mentioned that teams from Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) had traveled to the United States in recent months to engage in talks with prominent American producers, which have now been successfully finalized.

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The minister emphasized the government's dedication to providing affordable LPG for Indian families, especially for women benefiting from the Pradhan Mantri Ujjwala Yojana.