India Secures Landmark LPG Import Deal with US for Energy Security

India's public sector oil companies have signed a historic one-year deal to import 2.2 million tonnes per annum of liquefied petroleum gas (LPG) from the United States. This strategic move, announced by Union Minister Hardeep Singh Puri, aims to diversify India's LPG supply and enhance energy security.

In a groundbreaking development for India's energy sector, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced on Monday that public sector oil companies in the nation have inked a historic one-year agreement to import liquefied petroleum gas (LPG) from the United States for the first time.

The minister highlighted in a social media post that this marks a significant step in India's endeavor to secure affordable and reliable LPG supplies for its population. The deal involves importing approximately 2.2 million tonnes per annum (MTPA) of LPG, constituting nearly 10 percent of India's annual imports, primarily sourced from the US Gulf Coast.

Puri explained that the purchase will be benchmarked to Mount Belvieu, a significant pricing point for global LPG. He also emphasized the government's commitment to keeping LPG affordable, particularly for households benefiting from the Pradhan Mantri Ujjwala Yojana. The new agreement is part of ongoing efforts to insulate domestic consumers from international price shocks.

(With inputs from agencies.)