India Turns to Africa for Cheaper Cooking Gas Amid Middle Eastern Disruptions
India's largest state-owned oil refiner, Indian Oil Corporation (IOC), has signed a deal with Algeria's state energy company Sonatrach to import liquefied petroleum gas (LPG) from 2027. This agreement comes after the Strait of Hormuz disruptions exposed India's reliance on Middle Eastern suppliers, causing LPG shortages and prompting the country to seek cheaper alternatives.
The deal will see IOC import between 45,000 and 55,000 metric tonnes of LPG each month through very large gas carriers, equivalent to about 540,000 to 660,000 tonnes annually. The shipments will contain a mix of propane and butane, which are widely used as cooking fuel in Indian households.
Algeria's competitive pricing was a key factor in the revival of the partnership, with sources saying Sonatrach's LPG prices are lower than Saudi Aramco's Contract Price. This agreement strengthens Algeria's position as a growing energy supplier beyond its traditional European markets, while expanding Africa's role in India's energy security strategy.