India Seeks 2.75 Million Tons of US LPG for 2027 Through Term Tender

India’s state-owned fuel retailers are seeking around 2.75 million metric tons of liquefied petroleum gas from the United States for delivery during 2027, according to a joint tender reviewed by Reuters. 

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Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation are seeking four very large gas carrier cargoes every month under the tender. 

Each cargo will carry 46,000 tons of LPG, divided equally between propane and butane, and will be supplied on a delivered basis throughout 2027. 

The tender will remain valid until October 22. 

Tender also seeks monthly cargo on FOB basis 

Alongside the four monthly delivered cargoes, the three companies are seeking an additional 45,000-ton LPG cargo every month on a free-on-board basis. 

LPG is made up of propane and butane and is widely used as cooking fuel by Indian households. 

The tender comes at a time when India remains heavily dependent on imported LPG to meet domestic requirements. 

Middle East supplied 90% of India’s LPG imports in 2025 

India is the world’s second-largest LPG importer after China. 

The country imported 21.85 million metric tons of LPG in 2025, with around 90% of those supplies coming from the Middle East. 

Imports accounted for approximately 66% of India’s overall LPG consumption during the year, according to government data cited in the report. 

The proposed purchases from the United States would therefore account for another source of LPG supplies for the three state-run fuel retailers during 2027. 

Recent supply disruption brought LPG availability into focus 

The tender follows disruptions to fuel supplies after the US-Israeli war on Iran began at the end of February. 

The disruption prompted the Indian government to introduce emergency measures in March. Petrochemical feedstocks normally supplied to industry were diverted towards households, where LPG is used as cooking gas. 

Against this backdrop, Indian Oil, Bharat Petroleum and Hindustan Petroleum are now seeking US LPG supplies covering the full 2027 calendar year, with both delivered and free-on-board cargoes included in the tender.