(MENAFN) India announced Monday it has finalized a groundbreaking agreement to purchase Liquefied Petroleum Gas from the United States, marking a strategic shift in the nation's energy sourcing strategy.

Hardeep Singh Puri, India's Minister for Petroleum and Natural Gas, described the arrangement as the country's inaugural "structured contract of US LPG for the Indian market."

"One of the largest and the world's fastest growing LPG market opens up to the United States," Puri posted on X, the social media platform. "In our endeavour to provide secure affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing."

Puri characterized the agreement as a "significant development," noting that India's Public Sector Undertaking oil enterprises have "successfully concluded" a 12-month import contract.

The arrangement will see India bring in 2.2 million tons of LPG annually—representing approximately 10% of the nation's yearly import volume, according to Puri.

Indian state-owned petroleum companies have been negotiating with leading American producers in recent months, Puri confirmed.

The energy pact emerges as diplomatic relations between Washington and New Delhi face strain over 50% tariffs the Trump administration levied on Indian exports, partially triggered by India's continued procurement of Russian crude oil during the ongoing Ukraine conflict.

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