Indian State Oil Firms Jointly Seek 2.75 Million Tons of US LPG for 2027

Three of India's state-owned liquefied petroleum gas (LPG) importers have jointly issued a tender seeking to purchase approximately 2.75 million metric tons of LPG from the United States for delivery throughout 2027, according to tender documents cited by Reuters.

Tender Details

The tender was released by a consortium of Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL), and Hindustan Petroleum Corp (HPCL). The companies are seeking monthly deliveries to meet India's significant domestic energy demand.

According to the documents, the specific requirements for the 2027 calendar year include:

• Four monthly cargoes of 46,000 tons each, to be supplied on a delivered ex-ship (DES) basis.
• Each of these cargoes is specified to be an equal split of propane and butane.
• An additional monthly cargo of 45,000 tons, to be supplied on a free-on-board (FOB) basis.

Ad

The deadline for submitting offers for the tender is October 22.

Market Context

This large-scale, coordinated procurement underscores India's position as a critical player in the global energy market. The country is the world's second-largest importer of LPG, a mixture of propane and butane used primarily for cooking and heating, surpassed only by China.

By sourcing from the U.S., a major global exporter of LPG, the Indian firms are looking to secure a stable, long-term supply chain. A joint tender of this size allows the companies to leverage their combined purchasing power, potentially securing more favorable pricing and shipping terms. The move signals sustained demand from one of the world's fastest-growing energy consumers and will be closely watched by LPG producers and commodity traders.