India Courts More US LPG Amid Middle East Import Diversification Drive

India is seeking to reduce its reliance on Middle Eastern liquefied petroleum gas (LPG) by increasing imports from the US. The country's state-owned refiners, Indian Oil Corp., Bharat Petroleum Corp., and Hindustan Petroleum Corp., are in talks with US suppliers to secure more LPG under annual contracts for 2027.

The government has instructed these companies to source at least 15% of India's 2027 LPG imports through US term contracts. This is a significant move, as the US has already emerged as India's top supplier of LPG this year, with shipments reaching a record 3.9 million tons by August.

The push for more US LPG imports is also driven by India's pursuit of a trade deal with Washington. By diversifying its supply pool, India aims to narrow its trade surplus with the US and reduce its reliance on Middle Eastern supplies.