India Moves to Secure Long-Term US LPG Deals Amid Trade Shifts and Rising Imports

India is preparing to sign its first-ever long-term contracts for liquefied petroleum gas (LPG) with the United States, in a move that signals a realignment of energy sourcing. The shift comes as global trade dynamics, particularly the US-China tariff conflict, disrupt LPG flows and create new opportunities for Indian buyers.

India’s Tender and Strategic Importance

According to a tender reviewed by Bloomberg, state-owned oil companies in India plan to source up to three very-large gas carriers of LPG each month in 2026 from the US. These firms currently serve over 331 Mn households, with more than 60% of national LPG demand met via imports. This is the first time India is seeking long-term contracts with American suppliers, in line with New Delhi’s commitment to boost US energy purchases.

Shifting Global Energy Patterns

The interest in US LPG comes against the backdrop of the US-China trade dispute, which has unsettled global energy markets. LPG shipments have been caught in rising tariffs, forcing China, once a major buyer of American shale cargoes, to pivot to West Asian suppliers and trade US volumes at a discount. In response, producers like Saudi Arabia have reduced prices to protect their share in Asia, while Saudi Aramco has informed customers that its pricing will increasingly align with Asian benchmarks.

Oil Imports from US and Russia’s Dominance

Alongside LPG, India has accelerated purchases of US crude oil. Loadings for India averaged 398,000 barrels per day (bpd) in August and 341,000 bpd in September 2025, sharply up from 254,000 bpd in June and 166,000 bpd in July, according to maritime intelligence firm Kpler. US cargoes, which take about two months to reach Indian refineries, now form a growing share of India’s import basket.

Despite this trend, Russia continues to be India’s largest oil supplier, with shipments to India at 1.5 Mn bpd in August and September, only slightly below 1.6 Mn bpd in June and 1.7 Mn bpd in July. This underscores Russia’s continued dominance in India’s energy landscape, even as India diversifies its sources.

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Conclusion

India’s push to lock in long-term US LPG contracts marks a turning point in its energy strategy. With rising US imports and Russia’s enduring role as the top supplier, the country is reshaping its trade mix to balance security, pricing, and geopolitics. The move is set to strengthen supply chains for households and industries alike while navigating a volatile global energy market.

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