Indian NOCs Seek Inaugural US Term LPG Using OPIS Mont Belvieu Price
State-run refiners Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. have jointly issued the first-ever Indian term tender seeking U.S.-origin LPG cargoes using OPIS Mont Belvieu prices for 2026 delivery, according to a tender document dated Friday.
The tender seeks up to three evenly split U.S.-origin LPG cargoes of 44,000–46,000 metric tons each month for 2026 delivery on a CIF one- or two-port discharge basis into India. An operational tolerance of ±10% is permitted for propane and butane, but the propane volume must not exceed the butane volume.
For every four awarded cargoes, one may be supplied from any origin, but if fewer than four are awarded, all cargoes must originate from the U.S.
Pricing will be based on the monthly average of OPIS Mont Belvieu Non-TET propane and normal butane prices for the month prior to delivery, respectively, plus terminal fees and freight, the document showed. The tender closes on Oct. 9 with validity until Oct. 10.
India-based sources said the tender aligns with the country’s aim of sourcing 10% of LPG from the U.S. starting in 2026, in a bid to diversify energy supply and reduce dependence on the Middle East. Historically, India relies heavily on Middle Eastern LPG supply. From January to September, of the total 15.72 million mt of LPG imported into India, 14.21 million mt came from the Middle East, Vortexa data shows.
“Diversifying supply and increasing U.S. volumes is also important for energy security,” an Indian shipbroker said. “Relying mostly on the Middle East exposes India to geopolitical risks, shipping disruptions and potential hikes in CP levels. U.S. cargoes provide an alternative supply source for India.”
Sources noted that while the U.S. has not traditionally been a key LPG supplier to India, Indian buyers have increased imports of U.S. spot cargoes during the height of recent trade tensions.
“With tariffs disrupting U.S. LPG flows into China, Chinese buyers have turned to the Middle East, limiting availability for India. As a result, India began purchasing more U.S. supply,” a trader said.
Vortexa data shows U.S. LPG exports to India climbed to 345,600 mt in June and 438,700 mt in July, the highest so far this year. Volumes fell to 238,900 mt in August and 167,400 mt in September after the tariff pause extension in early August encouraged some Chinese buyers to resume U.S. cargo purchases, freeing Middle Eastern supply for India.
— Reporting by Cheryl Lee, clee@opisnet.com; Editing by Lujia Wang, lwang@opisnet.com and Mei-Hwen Wong, mwong@opisnet.com