Indian Oil Corp. and Algeria's Sonatrach Finalize 2027 LPG Imports
en.Wedoany.com Reported - On August 20, Indian Oil Corporation (IOC), India's largest refiner, has finalized a liquefied petroleum gas (LPG) import agreement with Algeria's national oil and gas company Sonatrach, planning to import one very large gas carrier (VLGC) cargo per month starting in 2027.
Under the agreement, IOC will import 45,000 to 55,000 metric tons of LPG (a mixture of propane and butane) per month, settled on a free-on-board (FOB) basis.According to sources familiar with the matter, Algerian LPG prices are lower than Saudi Aramco's contract prices.
IOC had signed a long-term supply agreement with Sonatrach several years ago, but later shifted to sourcing from the Middle East.The resumption of long-term cooperation with Algeria comes as India diversifies its LPG import sources. Recent disruptions to transits through the Strait of Hormuz have affected Middle East energy shipments, forcing India to implement rationed LPG supplies.
India resumed LPG imports from Algeria in June 2026, with preliminary trade flow data indicating approximately 110,000 metric tons expected to be received in August.Additionally, India is increasing LPG purchases from the United States to offset the supply gap from the Middle East, planning for U.S. imports to account for one-quarter of its LPG supply in 2027.
