Indian Oil Corp to import LPG from Algeria to secure energy supplies

LPG imports energy diversification Sonatrach Indian Oil Corporation cooking gas supply

Indian Oil Corporation (IOC) is finalizing a strategic agreement with Algeria’s state energy company, Sonatrach, to import liquefied petroleum gas (LPG) starting in 2027. The deal aims to secure a steady supply of propane and butane, which are essential for cooking fuel in Indian households.

The move is driven by a need to diversify energy sources following disruptions in the Strait of Hormuz, which have impacted Middle Eastern supplies and caused LPG shortages in India. By partnering with Algeria, India seeks to reduce its vulnerability to geopolitical volatility in the Gulf.

Under the proposed terms, IOC expects to receive monthly shipments of between 45,000 and 55,000 metric tonnes via very large gas carriers. This would total approximately 540,000 to 660,000 tonnes annually. Sources indicate that Algerian pricing is highly competitive compared to traditional Middle Eastern suppliers, such as Saudi Aramco.