India Plans to Source 25% of LPG Imports from the US by 2027

India is planning a major shift in its LPG import strategy by sourcing 25% of its total liquefied petroleum gas (LPG) imports from the United States by 2027. The move is aimed at reducing the country's heavy dependence on West Asian suppliers while strengthening energy security amid geopolitical uncertainties. Industry experts believe that diversifying import sources will help ensure a stable supply of LPG and also support the proposed India-US trade agreement by expanding bilateral energy cooperation.

State-owned oil marketing companies, including Indian Oil Corporation (IOC), Bharat Petroleum (BPCL) and Hindustan Petroleum (HPCL), are expected to issue international tenders within the next one to two months for LPG supplies from the US beginning in 2027. An Indian government delegation is also expected to visit the United States next month to hold discussions on the proposed arrangement. India has committed to increasing energy imports from the US from $10 billion to $25 billion as part of broader trade goals. Currently, nearly 90% of India's imported LPG comes from West Asia, but imports from the US have been steadily increasing and are expected to exceed planned targets by the end of 2026 as domestic demand continues to rise.