October 30, 2026: India's three state-owned importers of liquefied petroleum gas (LPG) are expected to award their joint 2027 tender to ADNOC Trading, TotalEnergies Trading and Chevron. Two unnamed market participants said so on October 28, 2026. They report roughly a dozen offers received. No official award had been found at this stage. The buyers are Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, three state-run companies.

The war launched against Iran earlier this year and the effective closure of the Strait of Hormuz deprived India of most of its usual LPG supply. A large share of Indian consumption depends on imports, and nearly all imported LPG transited through the strait. Consumption fell sharply in the first half, for lack of available cargoes rather than lack of demand. Supply tensions are affecting other markets: France sells up to 1.6 million cubic meters of strategic diesel to fuel distributors, while the United Kingdom is considering approving a few oil and gas tiebacks ahead of its legislation.

A tender indexed to the Texas hub of Mont Belvieu
The tender combines monthly cargoes delivered to India with one monthly cargo loaded at the origin terminal. It is the second exercise of its kind, following a first tender for the current year whose volume was significantly lower. The pricing formula for terminal-loaded cargoes is indexed to a monthly index of the Texas hub of Mont Belvieu, plus terminal fees. Phillips 66 was the supplier of the 2026 contract.

The specifications allow a limited share of delivered cargoes of non-US origin, provided a minimum number of cargoes is awarded each month. ADNOC Trading's presence among the likely winners therefore does not indicate where the cargoes will come from. The company had already supplied US-origin cargoes to Indian refiners in 2025. It has also shipped cargoes from the United Arab Emirates, through Hormuz or by transshipment in Omani waters, once Gulf flows resumed.

(Source: Energynewspro)