India’s state-run refiners have locked in their first-ever long-term deal to import U.S. liquefied petroleum gas (LPG), awarding tenders to Chevron, Phillips 66, and TotalEnergies Trading for delivery beginning in 2026—a move that marks a geopolitical and commercial break from the Middle East and a step toward appeasing Washington.
The deal covers around 2 million metric tons of LPG—some 48 very large gas carrier cargoes—jointly purchased by Indian Oil, Bharat Petroleum, and Hindustan Petroleum. It’s the first time the three refiners have banded together for long-term U.S. supply of the fuel, which is still subsidized at home. While pricing details haven’t been disclosed, the contracts give suppliers leeway to source one in four cargoes from outside the U.S., a flexibility likely designed to manage logistics and pricing swings.
It’s also a message to Riyadh. Saudi Aramco recently cut official selling prices for propane and butane to two-year lows after India signaled plans to diversify away from Gulf dependence. For producers like Aramco and ADNOC, the loss of India’s long-term security as a captive market comes just as China’s demand has slowed.