India has announced a major energy deal with the United States that will see Washington supply nearly 10 percent of the country’s liquefied petroleum gas (LPG) imports, marking a significant step in New Delhi’s efforts to diversify its energy sources.
Minister for Petroleum and Natural Gas Hardeep Singh Puri confirmed the one-year agreement on Monday, stating that India will import 2.2 million tonnes per annum of LPG from the US Gulf Coast. He described the deal as “the first structured contract of US LPG for the Indian market,” adding that it would provide secure and affordable supplies for one of the world’s fastest-growing LPG markets.
Relations between Washington and New Delhi have been strained in recent months. In August, President Donald Trump raised tariffs on Indian goods to 50 percent, accusing the country of indirectly supporting Russia’s war in Ukraine by purchasing discounted Russian oil. Trump has claimed Prime Minister Narendra Modi agreed to reduce Russian oil imports as part of a prospective trade deal, though India has not confirmed this.
Despite ongoing disagreements over agricultural trade and energy purchases, both nations remain engaged in negotiations. The LPG deal is seen as a potential stabilising factor in bilateral ties.
India has already begun adjusting its energy strategy. In October, state-backed refiner HPCL-Mittal Energy halted purchases of Russian crude following US sanctions on Moscow’s two largest oil companies. Reliance Industries, India’s biggest private buyer of Russian oil, has also said it is reviewing the implications of US and EU restrictions.
