India May Double LPG Imports From US To Reduce Gulf Dependence, Strengthen Energy Security

Published 6 July 2026 · india

India May Double LPG Imports From US To Reduce Gulf Dependence, Strengthen Energy Security Published By, Last Updated: July 06, 2026, 07:34 IST India is

India May Double LPG Imports From US To Reduce Gulf Dependence, Strengthen Energy Security Published By, Last Updated: July 06, 2026, 07:34 IST India is considering doubling LPG imports from the US while exploring Algeria as a new supplier to reduce dependence on Gulf nations and strengthen the country's energy security. India is also exploring alternative sourcing destinations, including Algeria, to diversify its LPG imports. India is preparing to expand its liquefied petroleum gas (LPG) imports from the United States as part of a broader plan to make its energy supply chain more resilient. The move is aimed at reducing the country’s reliance on Gulf nations for cooking gas and ensuring a stable supply during periods of geopolitical uncertainty. People familiar with the matter said state-run oil marketing companies (OMCs) are considering increasing their contracted LPG purchases from the US beyond the current 2.2 million tonnes annually. Discussions are underway to nearly double the contracted volume, although a final decision is yet to be taken, according to a report by Times Of India.

India Looks Beyond The Gulf For LPG Supplies Alongside the US, India is also exploring alternative sourcing destinations, including Algeria, to diversify its LPG imports. Officials believe widening the supplier base will reduce the risks associated with depending heavily on one region, particularly during times of conflict or supply disruptions. The strategy reflects India’s long-term effort to strengthen fuel security while meeting the country’s rising demand for domestic cooking gas. West Asia Conflict Changed India’s Import Strategy India had signed a structured one-year agreement with the United States in November 2025 to import LPG during the 2026 contract year. Under the arrangement, American shipments were expected to account for nearly 10 per cent of India’s annual cooking gas requirement. The agreement gained greater significance during the conflict in West Asia. As LPG shipments from Gulf countries faced disruptions, supplies from the US helped bridge the gap and ensured that domestic demand remained largely unaffected.

Strategic LPG Reserve Plan Also In Focus The push to diversify imports is also expected to support the government’s plan to build strategic LPG reserves. In May, the Petroleum Ministry asked oil marketing companies to prepare an action plan to maintain a 30-day strategic reserve of LPG. Officials believe securing supplies from multiple countries will improve India’s preparedness for future emergencies while making the fuel supply chain more reliable. LPG Supply Emerged As Key Concern According to people aware of the discussions, the recent geopolitical tensions exposed vulnerabilities in LPG supply more than crude oil. One person familiar with the matter said crude oil availability remained relatively stable during the conflict, but securing adequate LPG supplies became a major challenge. The experience has strengthened the case for diversifying import sources and reducing dependence on a single region for one of India’s most widely used household fuels. News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit About the Author Anushka Vats Anushka Vats is a Sub-Editor at News18.com with a passion for storytelling and a curiosity that extends beyond the newsroom.