India secures 10% of its LPG imports from the US in a new one-year deal as trade tensions with Washington continue over Russian oil purchases.
NEW DELHI: India has signed a significant deal for the United States to supply nearly 10% of its liquefied petroleum gas imports.
The one-year agreement covers 2.2 million tonnes per annum of LPG sourced from the US Gulf Coast.
Minister for Petroleum and Natural Gas Hardeep Singh Puri called it “the first structured contract of US LPG for the Indian market”.
“In our endeavour to provide secure, affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing,” Puri said in a statement.
He described India as “one of the largest and the world’s fastest growing LPG market opens up to the United States”.
The deal comes amid ongoing trade tensions between Washington and New Delhi.
Relations deteriorated in August after President Donald Trump raised tariffs on India to 50%.
US officials have accused India of fuelling Russia’s war in Ukraine by purchasing discounted Russian oil.
Trump has claimed Prime Minister Narendra Modi agreed to cut Russian oil imports as part of a prospective trade deal, though New Delhi has not confirmed this.
India and the United States continue negotiations despite disagreements over agricultural trade and Russian oil purchases.
In October, Indian state-backed refiner HPCL-Mittal Energy halted purchases of Russian crude after Washington sanctioned Moscow’s two largest oil companies.
Privately owned Reliance Industries, India’s main buyer of Russian crude, is assessing implications of US and European Union restrictions.
India’s economy grew at its fastest pace in five quarters in the three months ending June 30.
However, US tariffs could reduce GDP growth by 60 to 80 basis points this fiscal year without relaxation.
