Indian Oil Firms Turn to US for 2027 LPG Supplies Amid Global Disruptions
Indian state-owned LPG importers are seeking to source supplies from the US for delivery throughout 2027. The tender, floated by Indian Oil, Bharat Petroleum, and Hindustan Petroleum, aims to secure around 2.75 million metric tonnes of liquefied petroleum gas. This will be achieved through four very large gas carrier cargoes every month, each carrying approximately 46,000 tonnes of propane and butane.
The tender also includes one 45,000-tonne cargo per month on a free-on-board basis. This procurement is part of the companies' efforts to diversify their supply base beyond the traditional Middle Eastern sources. India imported 21.85 million metric tonnes of LPG in 2025, with about 90% sourced from the Middle East.
The proposed US procurement would provide an additional source of LPG for Indian households, which rely heavily on imported supplies due to domestic production constraints. The disruption caused by the US-Israeli war on Iran has further emphasized the need for diversified supply chains.