NEW DELHI: India has signed a landmark agreement with the United States to source nearly 10 per cent of its liquefied petroleum gas (LPG) imports from the US, as New Delhi seeks to diversify its energy supplies. The one-year deal will see 2.2 million tonnes per annum of LPG shipped from the US Gulf Coast to India, marking the first structured US LPG contract for the Indian market, according to Petroleum Minister Hardeep Singh Puri.
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The deal comes amid complex trade ties between the two countries, which deteriorated in August when former US President Donald Trump imposed 50 per cent tariffs on Indian goods. The sanctions coincided with US concerns over India’s continued imports of discounted Russian oil, although New Delhi has not confirmed any agreement to reduce its Russian oil purchases. Talks between Washington and New Delhi are ongoing, covering issues ranging from agricultural trade to energy supplies.
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India’s move to diversify LPG sourcing aims to ensure secure and affordable energy for its growing population. State-backed refiner HPCL-Mittal Energy recently halted purchases of Russian crude in line with US sanctions, while Reliance Industries continues to assess the implications of restrictions imposed by the US and European Union. The country’s economy, the fifth-largest globally, grew at its fastest pace in five quarters in the three months ending June 30, but tariffs continue to weigh on growth projections.