How will the India-US LPG deal impact India's energy security?

The deal is expected to bolster India's energy security by diversifying its supply sources and reducing dependence on Gulf nations, a key vulnerability during regional conflicts.

What is the significance of India's increased energy purchases from the US?

The new LPG deal supports India's commitment to increasing its energy purchases from the US, which is part of ongoing negotiations to rebalance trade relations between the two countries.

Home / Business and Economy / India Inks First-Ever Annual US LPG Contract, Reducing Gulf Dependence

India Inks First-Ever Annual US LPG Contract, Reducing Gulf Dependence

Q: What is the new LPG deal between India and the US?

India has signed its first-ever annual cooking gas (LPG) supply deal with the United States, covering around 10% of its annual imports.

18 Nov

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Summary

India signs 1-year LPG supply deal with the US, 10% of annual imports
Aims to diversify sources and reduce reliance on Gulf nations
Deal supports India's commitment to increase energy purchases from the US

India Inks First-Ever Annual US LPG Contract, Reducing Gulf Dependence

In a significant move, India has secured its first-ever annual cooking gas (LPG) supply deal with the United States. This agreement, signed by state-run energy companies, aims to diversify India's supply sources and reduce its overdependence on Gulf nations, a key vulnerability during regional flare-ups.

The one-year contract, set to commence in 2026, will see India import around 2.2 million tonnes per annum (MTPA) of LPG from the US Gulf Coast, accounting for close to 10% of the country's annual imports. This strategic shift is expected to bolster India's energy security and rebalance its trade relations with the US, amid ongoing negotiations with the Trump administration.