India is taking steps to get its first long-term contracts with the United States for liquefied petroleum gas (LPG). The action is taken as the world’s supply of LPG, a vital cooking fuel and a crucial raw material for plastics, is disrupted by Washington’s trade disputes.
In 2026, state-owned oil corporations in India intend to purchase up to three extremely large gas carriers of LPG each month from the United States. Over 331 million households receive LPG from these companies, with imports accounting for more over 60% of the demand. India was searching for a long-term contract with US suppliers for the first time. The action comes after New Delhi pledged to boost US energy purchases.
India is interested in US LPG since global energy flows are being altered by the US-China trade dispute. The growing tariffs between the two biggest economies have had an impact on LPG. Once a major buyer of US shale, China has switched to West Asian sources and frequently exchanges its US cargoes at a discount.
To preserve their market, share in Asia, including India, big West Asian exporters like Saudi Arabia are responding by lowering their costs. According to traders, Saudi Aramco has also told clients that its contract prices will be more closely aligned with Asian standards in the future.
Crude loadings are volumes that are picked up from the ports of a producing nation; it usually takes two months for US cargoes to arrive at refineries in India. Russia is India’s biggest oil supplier in spite of Western pressure. In August and September, Russia’s oil loadings to India were 1.5 million barrels per day, which was only marginally less than the 1.6 million barrels per day and 1.7 million barrels per day recorded in June and July, respectively.