Propane is consumed globally in the residential and commercial sectors for uses such as heating. It’s also used as a petrochemical feedstock to produce propylene and ethylene, key feedstocks in plastic production
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The export of propane—a petrochemical feedstock and used in households for cooking—by the US to India in the 2025 calendar year has hit a record high as New Delhi balances trade relations with Washington.
According to the US Energy Information Administration (EIA), Washington has exported an average 1,327 thousand barrels of propane to India during January-September 2025. Besides, stretching the nine month data over the entire calendar year points to an average of around 996 thousand barrels.
In contrast, Washington’s propane exports to India averaged at 304 thousand barrels and 418 thousand barrels during 2023 and 2021 calendar years, respectively. Exports to India during these two years were at record high.
Comparing January-September shows that American propane cargoes averaged at 349 thousand barrels and 445 thousand barrels, during 2023 and 2021, respectively.
Propane is consumed globally in the residential and commercial sectors for uses such as heating. It’s also used as a petrochemical feedstock to produce propylene and ethylene, key feedstocks in plastic production.
LPG import
India utilises propane largely in households for cooking. It imports 55-60 per cent of its domestic liquefied petroleum gas (LPG) requirement with more than 90 per cent being consumed by households. India’s LPG imports stood at around 20.67 million tonnes (mt) in FY25 and 10.84 mt in H1 FY26.
West Asia traditionally accounts for a major share of India’s LPG imports. However, the US EIA data for 2025 and India’s recent deal with the US on LPG cargoes for 2026 points towards New Delhi’s growing preference for US LPG.
Recently, Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) successfully concluded a one-year structured contract to import around 2.2 million tonnes per annum (mtpa) of LPG from the US Gulf Coast for the contract year 2026.
This volume accounts for 10 per cent of India’s cumulative LPG imports and is the first structured US LPG contract for the Indian market.
Last month, Sehul Bhatt, Director at Crisil Intelligence, said the US pact for LPG offtake will help diversify India’s import basket, which has been skewed towards West Asia (around 92 per cent in FY25).
The envisaged volume of around 2 mtpa also provides some support to the India-US trade balance amid the ongoing tariff-induced uncertainty, with energy emerging as a potential stabiliser in bilateral ties, he had said.
India has been increasing its energy trade with the US since early 2025 after US President Donald Trump assumed office in January and started pressuring India to reduce its hydrocarbon trade with Russia. Rising propane shipments are a reflection of this narrative.
India has increased its purchases of crude oil, liquefied natural gas (LNG),LPG and coal from the US. Analysts point that passing of the SHANTI Act, which paves way for higher private sector participation in nuclear energy will further push higher civil and commercial participation between New Delhi and Washington.
Published on December 21, 2025
