India seeks 2027 LPG imports from US via term tender, document shows

Indian state-owned LPG importers have issued a joint tender seeking around 2.75 million metric tons of liquefied petroleum gas from the United States for delivery in 2027, a document reviewed by Reuters showed on Friday.

Indian Oil, Bharat Petroleum and Hindustan Petroleum are seeking four very large gas carrier cargoes per month. Each cargo would have a volume of 46,000 tons, evenly split between propane and butane, on a delivered basis every month during 2027. The tender also seeks one 45,000-ton cargo each month on a free-on-board basis. The tender is valid until October 22.

LPG is a mixture of propane and butane. India is the world’s second-largest importer of LPG, behind only China. It sourced about 90% of its 21.85 million metric tons of LPG imports from the Middle East in 2025, with imports accounting for around 66% of India’s total LPG consumption, according to government data.

The push to reduce reliance on the Middle East, which previously accounted for more than 90% of India’s LPG imports, follows acute shortages as the war in Iran disrupted flows through the Strait of Hormuz. The US has already emerged as the country’s top supplier of the oil product, with shipments reaching a record 3.9 million tons this year through August. The government has asked the three state refiners to source at least 15% of India’s 2027 LPG imports through US term contracts, following the country’s first-ever US term supplies earlier this year, which contracted about 2.2 million tons, or 10% of total inbound shipments.

The move is also expected to help India widen its supply pool and narrow its trade surplus with the US as New Delhi pursues a broader trade deal with Washington.