Big planning to reduce fuel dependence on Gulf countries, Indian companies preparing to buy LPG from Angola

New Delhi. To deal with the gas shortage in India due to the Iran war, government oil and gas companies are now exploring the option of purchasing LPG (LPG) from new countries. For this reason, companies like Indian Oil, Bharat Petroleum, Hindustan Petroleum and GAIL are in talks to buy LPG from the government company Sonangol of African country Angola.

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According to media reports, these companies are considering a long-term agreement with Sonangol. However, the talks are still in the initial stages and discussions are also going on at the government level. In fact, 92 percent of India’s LPG comes from Gulf countries. The Indian government wants to reduce this dependence. In such a situation, if the agreement is signed with Angola then the ships will reach India directly via Atlantic and Arabian Sea. They will not have to pass through the Strait of Hormuz.

Why is India buying LPG from Angola?

Oil and gas trade has already been going on between India and Angola, hence a trust and supply system is already in place between the two countries. For this reason it becomes easier to make a new deal. Gas is produced in Angola and propane and butane required for LPG are also available there, from which India can get gas directly. Angola is also the right option from the supply point of view, because gas can reach India by sea in 12 to 18 days and good export facilities are also available there. The energy sector in Angola is under government control, which makes it easy to compromise at the government level.

If the deal is made, LPG will come to India from Angola for the first time.

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Experts say that gas supply from Africa can reach India 10 to 15 days sooner than America. In such a situation, Angola can become a good option for India. If this agreement is signed, Angola will supply LPG to India for the first time.

Indian companies are considering signing an agreement for about one year for LPG and at least 10 years for LNG. Angola has reserves of about 4.6 trillion cubic feet of natural gas and is already supplying crude oil and LNG to India. Angola was India’s fifth largest LNG supplier in FY2025.

Preparation to buy LPG from Australia-Algeria and Russia also

India is exploring options to import gas not only from Angola but also from countries like Australia, Algeria and Russia, so that dependence on any one region can be reduced. This gas crisis can also affect industries like fertilizer and steel sectors. If this situation continues for a long time, gas prices may also increase and India may have to buy gas at expensive prices. The Petroleum Ministry has said that necessary steps are being taken to maintain the supply of gas and petroleum products in the country. Recently, two big ships have left for India carrying about 94 thousand metric tons of LPG.

92 percent of India’s LPG supply comes from 4 Gulf countries.

India is the world’s second largest LPG consumer and imports about 60 percent of its requirement. At the same time, about 50 percent of LNG is also imported. Till now, most of the LPG imports come from the Persian Gulf countries UAE, Qatar, Saudi Arabia and Kuwait.

The special thing is that the gas coming from all these countries passes through the same route, the Strait of Hormuz. It is only a 33 kilometer wide sea route, but about 20% of the world’s oil and gas trade takes place through here. In 2024-25, about 92% of India’s LPG imports will come from these four Gulf countries. Among these, UAE has emerged as the largest supplier, whose share has increased to more than 40%. At the same time, the share of Qatar and Saudi Arabia has declined.

Demand for LPG increased in India but not production

The demand for LPG is increasing rapidly in India, but domestic production is almost not increasing. This is the reason why the country has to import a large part of its needs from abroad, due to which the risk regarding supply has also increased. According to government data, India imported 20.67 million tonnes of LPG in the year 2024-25, which is about 40% more than 14.81 million tonnes in 2019-20.

On the other hand, India’s domestic production has remained almost stable. In 2019-20, the country produced 12.82 million tonnes of LPG, which came down to around 12.79 million tonnes in 2024-25. That means there was no increase in production. India used 31.32 million tonnes of LPG in 2024-25, which is about 19 percent more than in 2019-20. This increase has happened due to increase in gas connections especially in rural areas. Under Pradhan Mantri Ujjwala Yojana, LPG connections have been given to crores of families. Now there are more than 33 crore active gas connections in the country, due to which the demand is continuously increasing.