Indian state-owned LPG importers have issued a joint tender seeking around 2.75 mn t of liquefied petroleum gas from the United States for delivery during 2027, according to a document reviewed by Reuters. Indian Oil, Bharat Petroleum and Hindustan Petroleum are seeking monthly cargoes under term supply arrangements.

The tender calls for four very large gas carrier cargoes each month, with every cargo containing 46,000 t split evenly between propane and butane. The shipments would be delivered during each month of 2027. The tender also seeks one 45,000-t cargo per month on a free-on-board basis and remains valid until October 22.

LPG consists of propane and butane, and India is the world’s second-largest importer of the fuel after China. The country imported 21.85 mn t of LPG in 2025, with about 90 per cent sourced from the Middle East. Imports accounted for around 66 per cent of India’s overall LPG consumption, according to government data.

India is seeking to reduce its dependence on Middle Eastern supplies after disruptions linked to the war in Iran affected flows through the Strait of Hormuz. The United States has become the country’s leading supplier of LPG, with shipments reaching a record 3.9 mn t through August this year. The government has directed the three refiners to source at least 15 per cent of India’s 2027 LPG imports through US term contracts.

The move follows India’s first US term supplies earlier this year, covering about 2.2 mn t, or 10 per cent of total inbound shipments. It is also expected to widen India’s supply pool and help narrow its trade surplus with the United States as New Delhi pursues a broader trade agreement with Washington.