Archive · 20 Aug 2026
Indian Oil nears Algerian LPG import deal for 2027
Indian Oil may make a new agreement to buy cooking gas from Algeria in 2027.
The gas would come in large ships every month.
Each ship could carry 45,000 to 55,000 metric tonnes of LPG.
The shipments would include propane and butane.
Indian Oil would pay for transportation after the gas is loaded onto the ship.
India has already started importing some LPG from Algeria.
India is also buying more LPG from the United States because supplies from traditional Middle Eastern suppliers have become less available.
Having more suppliers could help India protect the cooking-gas supply used by households.
Indian Oil is close to signing a 2027 LPG import agreement with Algeria’s Sonatrach, according to a report.
The proposed deal would provide one LPG cargo of 45,000 to 55,000 metric tonnes each month.
Shipments would contain a mixture of propane and butane and be arranged on a free-on-board basis.
India began importing LPG from Algeria in June, with August arrivals estimated at about 110,000 tonnes.
The agreement would diversify India’s supplies as refiners seek alternatives to Middle Eastern imports and increase purchases from the United States.
- Who
- Indian Oil Corporation and Algeria’s state-owned energy company Sonatrach are involved.
- What
- They are close to signing a proposed agreement for monthly LPG imports in 2027.
- When
- The proposed agreement would cover 2027; India began importing Algerian LPG in June, with August arrivals estimated at about 110,000 tonnes.
- Where
- The LPG would be shipped from Algeria to India.
- Why
- India is widening its supplier base and seeking alternatives to traditional Middle Eastern LPG sources to strengthen supply resilience.
- Proposed term
- 2027
- Monthly volume
- One very large gas carrier carrying 45,000 to 55,000 metric tonnes of LPG
- Cargo composition
- A mix of propane and butane
- Pricing
- A source said Algerian LPG is priced below the Saudi Aramco Contract Price
- Contract basis
- Free on board (FOB), with the buyer responsible for transportation and related costs after loading
- August imports
- Preliminary LSEG trade-flow data indicates about 110,000 tonnes of Algerian LPG could arrive in August
- United States target
- India plans to source as much as 25% of its LPG imports from the United States in 2027