Indian Oil Finalizes Long-Term LPG Import Pact with Sonatrach

Algeria's national energy company, Sonatrach, has finalized a significant agreement with Indian Oil Corporation (IOC), India's largest refiner, for the monthly supply of Liquefied Petroleum Gas (LPG) throughout 2027. Under the terms of the deal, IOC will receive regular shipments, each comprising 45,000 to 55,000 tonnes of LPG, delivered on a Free on Board (FOB) basis. This agreement establishes a consistent supply channel for India's energy needs.

The accord is a response to India's strategy to diversify its energy imports, particularly following disruptions to supply flows from the Middle East through the Strait of Hormuz. For Sonatrach, the agreement solidifies its position as a credible alternative supplier in the global energy market and expands its presence in the crucial Asian market. This move allows Algeria to leverage its production and export capabilities beyond traditional markets.

This development marks a strong return for Sonatrach to the Indian market, re-establishing a commercial relationship that existed years prior before India increasingly sourced from Middle Eastern producers. Reports indicate that the pricing for Algerian LPG under this agreement is competitive compared to other major suppliers. The shift from sporadic purchases to guaranteed monthly deliveries ensures a more robust and sustained trade partnership between Sonatrach and Indian Oil.