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Market Chatter: India to Crank Up Imports of US LPG in 2027 in Pursuit of Trade Deal

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India will import up to 25% of its liquefied petroleum gas from the US next year, reducing its reliance on the turbulent Middle East, while also facilitating a trade deal with the world's largest economy, Reuters reported on Tuesday, citing unnamed sources.

The Asian country was forced to reallocate supplies away from industry to households this year following Iran's closure of the Strait of Hormuz, to meet needs for cooking. In 2025, India bought 90% of its 21.85 million metric tons of LPG imports from the Middle East.

State-owned refiners Indian Oil, Bharat Petroleum and Hindustan Petroleum are expected to launch tenders in the next two months for US LPG supplies for 2027, according to the sources, while a delegation will travel to the US to discuss the imports.

Larger imports of US energy would help narrow India's trade surplus with the US, as demanded by President Donald Trump, as New Delhi seeks to finalize a trade deal with Washington in the coming months. India has promised to increase US energy purchases to $25 billion, up from about $15 billion in the near future, the article said.

Neither India's oil ministry nor any of the three companies immediately replied to Reuters' request for comment.has reached out to the entities for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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