LPG deal with US may shield India from geopolitical shocks

India’s 2.2 million tonnes (mt) liquefied petroleum gas (LPG) term deal with the United States (US) is likely to insulate the country amid geopolitical disruptions in global energy markets, according to an expert.

- SHUBHANGI MATHUR

From 2026, Indian state-run oil marketing companies (OMCs) would import 10 percent of the country’s total LPG imports from the US. Indian companies did not have a term deal for LPG imports with the US until now.

India, which is 60 per cent import dependent for domestic LPG requirements, secures around 90 percent of its LPG imports from West Asian countries, including the United Arab Emirates, Qatar, Saudi Arabia, and Kuwait. India’s decision to import LPG from the US helps it to diversify sources as it reduces almost full reliance on West Asian countries for supply of the country’s primary cooking fuel.