India’s August LPG Imports See Algeria as Third-Largest Source
Algeria has significantly strengthened its position in the global energy market, emerging as India's third-largest supplier of liquefied petroleum gas (LPG) in August. The North African nation delivered 110,711 tonnes of LPG to India during the month, contributing approximately one-tenth of India's total LPG imports, which stood at around 1.08 million tonnes. This places Algeria directly behind the United States, which supplied 622,536 tonnes, and the United Arab Emirates, which provided 140,266 tonnes.
This increased supply from Algeria reflects a substantial surge in exports since June, when the nation began shipping LPG to India. Algerian supplies rose from 22,243.79 tonnes in June and 21,642.23 tonnes in July, indicating a rapid scale-up in response to evolving market needs. The development occurs amid broader disruptions to shipping in the Strait of Hormuz, which have affected global LPG supplies following events in West Asia. Algeria's state-owned energy company, Sonatrach, is recognized as the world's second-largest LPG exporter.
The diversification of supply sources is critical for India, the world's second-largest buyer of domestic cooking gas, which caters to 340 million LPG consumers and imports up to 65% of its annual requirement. Algeria's enhanced role is further solidified by a recently finalized agreement between India's state-owned Indian Oil Corporation and Sonatrach to purchase 55,000 tonnes of LPG monthly in 2027. This long-term deal positions Algeria as a consistent and competitive energy partner, with the agreed pricing reportedly set below the Saudi Aramco contract price.
This significant expansion in LPG trade contributes to the growing economic ties between the two nations. Bilateral trade between India and Algeria reached $1.71 billion as of fiscal year 2025, with Algerian exports to India including crude oil, liquefied natural gas, and natural calcium phosphates. Experts note that energy diversification remains central to India's growth strategy, making Algeria's emergence as a key LPG supplier a timely and strategic development for both countries amidst volatile geopolitical situations and the ongoing need to ensure consistent energy supplies.
