US Now Supplies 67% of India's LPG Imports as Nation Eyes 300 MMTPA Refining Goal
Hardeep Singh Puri reveals India gets 67% of LPG from the US and aims for 300 MMTPA refining capacity by 2030 to ensure energy security.
India has significantly shifted its energy procurement strategy, now securing nearly 67 per cent of its liquefied petroleum gas (LPG) imports from the United States. This strategic pivot is part of a broader effort to diversify supply chains and insulate the country from global geopolitical instabilities, according to Union Minister of Petroleum and Natural Gas Hardeep Singh Puri.
Speaking at a press conference during the 29th Energy Technology and Innovation Meet in South Goa, Minister Puri detailed how India proactively managed potential fuel crises by expanding its import footprint and boosting domestic production.
Strategic Pivot Amid Global Crisis
The shift toward US imports was born out of necessity and foresight. Minister Puri recalled the tensions surrounding the Hormuz crisis, which threatened supplies from traditional heavyweights like Qatar, the UAE, and Saudi Arabia. To avoid shortages, India initiated an arrangement in January to import 10% of its LPG from the US.
Following the success of this initial move, India aggressively scaled up its US imports. The Minister noted that the country has now expanded its overall import network from 27 nations to 41, sourcing LPG from various providers, including Algeria, to ensure a steady flow of fuel.
Boosting Domestic Production and Refining
While imports remain crucial, India is simultaneously ramping up its internal capabilities. Domestic LPG production has seen a significant jump, rising from 34,000 metric tons per day to 55,000 metric tons per day.
Minister Puri acknowledged a commercial tension within the industry: refiners generally prefer producing petrochemicals because they are more economically viable than fuels. However, he emphasized that during critical periods of national requirement, refineries are directed to prioritize LPG production.
The Road to 2030
India's refining ambitions are growing even as the global trend moves in the opposite direction. While Europe is losing refining capacity and Western nations are avoiding new greenfield projects, India is expanding.
- Current Capacity: 290 million metric tons per annum (MMTPA).
- 2030 Target: 300 million metric tons per annum (MMTPA).
This expansion positions India as a global refining hub, capable of meeting domestic demand, increasing exports, and scaling petrochemical output for long-term self-reliance.
Addressing Market Rumors and Infrastructure Growth
Responding to reports of fuel shortages, the Minister dismissed them as unfounded. He explained that a temporary spike in daily indents—which jumped from 51 lakh to 90 lakh cylinders—was caused by speculative hoarding rather than a lack of supply. This was quickly managed through administrative checks and state coordination.
Taking to X (formerly Twitter), Puri highlighted a decade of energy sector preparation, which includes:
- Building 5.33 MT of strategic reserves.
- Increasing refining capacity from 215 to 267 MMTPA (prior to the current 290 MMTPA).
- Expanding fuel outlets from 52,000 to over 100,000.
- Increasing LPG import terminals from 11 to 22.
Unlocking Future Potential
The Minister also pointed toward several key initiatives driving India's energy future:
- Samudra Manthan: A major push to explore offshore hydrocarbons, opening nearly 1 million sq. km of previously restricted "No-Go" areas.
- E20 Fuel: Helping lower energy import bills while providing additional income for farmers.
- GOBARdhan Scheme: Converting agricultural residue and organic waste into Compressed Biogas (CBG), promoting the vision of ‘Annadata se Urjadata’ (from food provider to energy provider).