India has extended the deadline for its first-ever long-term liquefied petroleum gas (LPG) import tender from the United States to October 17, 2025. The decision aims to give more time to global suppliers to finalize bids and align with recent market shifts in global LPG prices.

The tender, jointly issued by Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, seeks around 2 million metric tonnes of LPG for deliveries beginning in 2026.

The consortium of Indian refiners had initially invited offers earlier this year, marking the country’s first step toward securing long-term LPG supplies from the U.S. The move reflects India’s growing efforts to diversify its energy import sources and reduce its dependence on Middle Eastern suppliers.

Currently, over 90 percent of India’s LPG imports come from the Middle East, primarily from Saudi Arabia, Qatar, and the United Arab Emirates. By turning toward the U.S., India aims to strengthen its energy security and leverage competitive pricing.

Industry sources indicate that India’s refiners are considering importing roughly 10 percent of the country’s total LPG requirement from the United States starting in 2026. The U.S. has emerged as one of the world’s top exporters of LPG, driven by shale production and a growing infrastructure for gas liquefaction and shipping.

The tender is expected to be spread over multiple shipments throughout 2026, allowing India to lock in favorable pricing structures and reduce exposure to short-term market volatility.

This long-term arrangement is also viewed as a strategic move to deepen energy trade between India and the United States. Strengthening this trade channel not only supports India’s domestic energy demand but also contributes to balancing its trade relationship with Washington.

Analysts suggest that the deadline extension could attract additional bidders, enabling India to negotiate more competitive terms. It may also provide flexibility to adjust to global LPG market trends, especially given fluctuating freight and commodity prices.

With LPG demand rising steadily in India due to rapid urbanization and government-led initiatives promoting clean cooking fuel, securing reliable long-term supply sources has become a national priority.

The success of this tender could mark a significant milestone in India’s energy diplomacy, diversifying import routes, enhancing trade cooperation with the U.S., and setting the tone for future energy partnerships on a global scale.