India turns to US for major LPG supply as trade tensions continue.
India says it has sealed a major deal for cooking gas from the United States a move clearly aimed at spreading its energy basket and reducing over-dependence on any single country.
The one-year contract will bring in 2.2 million tonnes of LPG from the US Gulf Coast, roughly 10% of India’s total LPG imports.
Petroleum Minister Hardeep Singh Puri said this is the “first structured US LPG contract” for India, and part of efforts to keep cooking gas supply stable and affordable for households.
But the announcement comes at a tense moment.
Relations between India and the US have been shaky since August, when President Donald Trump increased tariffs on Indian goods to 50%. Washington accused India of helping Russia by buying cheap Russian oil, a claim New Delhi has repeatedly defended as necessary for its economy.
Trump also suggested that Prime Minister Narendra Modi agreed to reduce Russian oil imports ahead of a possible trade deal something India has not confirmed.
The two countries are still negotiating, but key disagreements remain:
– US tariffs
– India’s agricultural exports
– Russian oil purchases
Meanwhile, Indian refiners are already adjusting to US pressure. HPCL-Mittal Energy says it stopped buying Russian crude after Washington placed sanctions on major Russian oil firms. Reliance Industries, India’s biggest private buyer of Russian oil, is also reviewing the new restrictions from the US and EU.
India’s economy has been growing fast, it posted its strongest growth in over a year in the quarter ending June 30, helped by higher government spending and better consumer confidence. But experts warn that the ongoing US tariffs could cut 0.6 to 0.8% off India’s GDP this fiscal year if nothing changes.
For now, the LPG deal signals that while New Delhi and Washington disagree on many things, both sides still need each other when it comes to energy and trade.
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