India Seeks 2.75 Million Tonnes of US LPG for 2027 in Term Tender

India's state-run oil companies have jointly tendered for around 2.75 million metric tonnes of LPG from the United States for delivery in 2027, according to a tender document reviewed by Reuters on September 25.
Indian Oil, Bharat Petroleum and Hindustan Petroleum are seeking four very large gas carrier cargoes per month — 46,000 tonnes each, evenly split between propane and butane on a delivered basis — plus one 45,000-tonne cargo per month on a free-on-board basis. The tender is valid until October 22. Propane and butane are the main gases that make up cooking-gas LPG.
India is the world's second-largest LPG importer after China. It imported 21.85 million metric tonnes in 2025, about 90% from the Middle East, with imports covering roughly 66% of total LPG consumption.
The US has already emerged as India's top LPG supplier, with a record 3.9 million tonnes shipped through August this year. The government has asked the three refiners to source at least 15% of 2027 LPG imports through US term contracts, diversifying away from Middle East flows that pass through the Strait of Hormuz. The move strengthens India's energy security while deepening energy trade ties with Washington.
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