India's 2.75 Million Ton LPG Procurement Tender for 2027 Nears Award

en.Wedoany.com Reported - On October 28, the joint long-term liquefied petroleum gas (LPG) procurement tender for 2027 conducted by three Indian state-owned oil companies entered the potential supplier determination stage. The procurement volume is approximately 2.75 million tons, with delivery covering the full year of 2027. ADNOC Trading, a subsidiary of Abu Dhabi National Oil Company of the UAE, the trading arm of France's TotalEnergies, and US-based Chevron are expected to secure supply contracts. The tender received approximately 12 bids and is currently still in the expected award stage.

The procurement is jointly organized by Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation. The plan is to procure 4 LPG cargoes per month, each approximately 46,000 tons, transported by very large gas carriers (VLGC). According to the tender document published in September, the procured cargo consists of equal parts propane and butane, primarily on a delivered basis, with one cargo of approximately 45,000 tons per month arranged on a free-on-board basis.

The tender primarily targets US-origin LPG supply for 2027. Under the procurement terms, up to 25% of the awarded delivered cargo volume may originate from outside the United States. The three Indian state-owned oil companies previously jointly procured approximately 2.2 million tons of US LPG for delivery in 2026, and the current procurement volume of 2.75 million tons represents a 25% increase over the previous round.