Sonatrach to Supply Indian Oil with LPG from 2027

Algeria's national oil and gas company, Sonatrach, has entered into an agreement with Indian Oil Corporation (IOC) for the direct supply of liquefied petroleum gas (LPG). This significant contract is scheduled to commence in 2027 and will see Sonatrach provide India with between 45,000 and 55,000 tons of LPG monthly, thereby re-establishing previous trade relations between the two companies.

The comprehensive agreement outlines the delivery of a cargo blend that includes both propane and butane. All transactions under this deal will be conducted on a Free-On-Board (FOB) basis, meaning that Indian Oil Corporation will assume responsibility for the gas once it is loaded onto the vessel.

This renewed partnership highlights Algeria's competitive edge in the global energy market. Reports indicate that the pricing for LPG supplied by Algeria is more favorable compared to that offered by Saudi Aramco, positioning Sonatrach as an attractive and economical supplier for international buyers like Indian Oil.