The United States’ export of propane to India has surged to a record high in 2025, highlighting the growing energy partnership between New Delhi and Washington.
According to the US Energy Information Administration (EIA), the US exported an average of 1,327 thousand barrels of propane per month to India between January and September 2025. When annualized, this points to an average of around 996 thousand barrels per month for the full calendar year, significantly higher than previous record levels.
For context, US propane exports to India averaged 304 thousand barrels in 2023 and 418 thousand barrels in 2021. The monthly averages for the January-September period in 2023 and 2021 were 349 thousand barrels and 445 thousand barrels, respectively.
Propane, a key component of liquefied petroleum gas (LPG), is used globally in residential and commercial heating and as a petrochemical feedstock to produce propylene and ethylene, essential in plastics manufacturing. In India, propane is primarily consumed in households for cooking. The country imports 55–60% of its domestic LPG requirement, with over 90% consumed by households. India’s LPG imports totaled 20.67 million tonnes (mt) in FY25 and 10.84 mt in H1 FY26.
Traditionally, West Asia has accounted for the majority of India’s LPG imports. However, the surge in US shipments and India’s recent deal with the US signal a growing shift in sourcing. Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL) recently concluded a one-year structured contract to import around 2.2 million tonnes per annum (mtpa) of LPG from the US Gulf Coast for 2026. This volume represents 10% of India’s total LPG imports and marks the first structured US LPG contract for the Indian market.
Sehul Bhatt, Director at Crisil Intelligence, noted that the deal would diversify India’s LPG import basket, which in FY25 was heavily skewed towards West Asia (around 92%). The contract is also expected to support the India-US trade balance amid ongoing tariff-related uncertainties, with energy trade emerging as a stabilizing factor in bilateral relations.
India’s energy trade with the US has been on the rise since early 2025, following pressure from US President Donald Trump to reduce India’s hydrocarbon imports from Russia. The increase in propane shipments reflects this strategic pivot. India has also boosted its purchases of crude oil, liquefied natural gas (LNG), LPG, and coal from the US. Analysts suggest that the passing of the SHANTI Act, allowing greater private sector participation in nuclear energy, could further strengthen civil and commercial energy ties between the two countries.
