India seeks first long-term US LPG contracts amid global supply shifts
New Delhi: India is moving to secure its first long-term liquefied petroleum gas (LPG) contracts from the United States, Bloomberg reported, as global LPG supplies face disruption due to trade tensions in Washington.
LPG, widely used for cooking and as a key raw material for plastics, has seen shifting trade flows in recent months.
According to a tender document reviewed by Bloomberg, Indian state-owned oil companies plan to purchase up to three very-large gas carriers of US-sourced LPG each month in 2026.
These firms supply LPG to over 331 million households, with more than 60% of demand currently met through imports.
Traders noted that this marks the first time India is pursuing a long-term supply arrangement with US exporters, reflecting New Delhi’s commitment to increasing energy purchases from Washington.
The move comes amid the ongoing US-China trade war, which has reshaped global LPG flows.
Previously, China imported heavily from US shale producers but has now shifted to West Asian suppliers.
This has caused US cargoes to be sold at discounts in the market, Bloomberg reported.
Major West Asian suppliers, including Saudi Arabia, are cutting prices to protect their market share in Asia, including India, and Saudi Aramco has indicated future contract pricing will align more closely with Asian benchmarks.
India has also ramped up crude oil imports from the US. Shipments from US ports destined for Indian refineries averaged 398,000 barrels per day (bpd) in August and 341,000 bpd in September 2025, rising sharply from 254,000 bpd in June and 166,000 bpd in July, according to maritime intelligence firm Kpler.
US crude cargoes typically take around two months to reach Indian refineries.
Despite growing ties with the US, Russia remains India’s largest oil supplier. Shipments from Russia to India stood at 1.5 million bpd in August and September, slightly down from 1.6–1.7 million bpd in June and July, indicating continued reliance on Moscow amid Western pressures.
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