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India Eyes US LPG: Trade Deal Boon?
28 Jul
Summary
- India plans to import 25% of LPG from US by 2027.
- This move aims to reduce Middle East reliance.
- US energy purchases may aid a trade deal with Washington.
By 2027, India plans to import as much as 25% of its liquefied petroleum gas (LPG) from the United States. This significant shift is expected to decrease reliance on Middle Eastern suppliers and support the ongoing efforts to finalize a trade agreement with Washington. The move follows a severe LPG shortage India experienced earlier in the current year due to supply disruptions.
State-run companies are anticipated to issue tenders for US LPG in the coming months, with delegations preparing to visit the US for discussions. Increased energy purchases from the US could help India reduce its trade surplus, a key demand from President Trump. India has committed to boosting US energy imports by $10 billion to $25 billion.
US LPG imports for India have already seen a substantial increase, surpassing one million tonnes in June. Projections indicate that by 2027, India's LPG imports could rise to nearly 20 million tonnes as demand is expected to recover.
