India is seeking to secure its first long-term (Liquefied Petroleum Gas) LPG supply deals with the United States, amid global disruptions caused by U.S. trade tensions, according to a report by Bloomberg.
As per the report, India’s state-run oil companies intend to purchase up to three very large gas carriers of LPG per month from the United States starting 2026. These firms currently supply LPG to over 331 million households, with imports fulfilling more than 60% of the country’s demand. Traders noted that this marks the first instance of India pursuing a long-term supply deal with U.S. exporters, aligning with New Delhi’s pledge to boost energy imports from the U.S.
India’s growing interest in U.S. LPG comes amid a shift in global energy trade patterns driven by the U.S.-China trade dispute. Rising tariffs between the two economic giants have disrupted LPG flows, with China, once a major buyer of U.S. shale LPG, now turning to West Asian suppliers and frequently reselling U.S. cargoes at discounted rates, according to Bloomberg.
In response, key West Asian exporters like Saudi Arabia are lowering prices to maintain their share in Asian markets, including India. Traders also noted that Saudi Aramco has told clients its future contract pricing will be more closely tied to Asian pricing benchmarks.
In addition to boosting LPG imports, India has significantly ramped up its crude oil purchases from the United States in recent months. According to maritime intelligence firm Kpler, shipments departing U.S. ports for India averaged 398,000 barrels per day (bpd) in August and 341,000 bpd in September—up sharply from 254,000 bpd in June and just 166,000 bpd in July.
Despite Western pressure, Russia remains India’s top oil supplier. In August and September, shipments of Russian oil to India averaged 1.5 million bpd, just slightly below the 1.6 million bpd and 1.7 million bpd recorded in June and July, respectively.
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