Sonatrach, Algeria's national energy company, has finalized a commercial agreement with Indian Oil Corp (IOC), India's largest refiner, for the long-term supply of liquefied petroleum gas (LPG). This deal, concluded on August 20, 2026, stipulates monthly shipments of LPG from Algeria to the Indian subcontinent beginning in 2027. The agreement marks a re-engagement between Sonatrach and a historical partner, as IOC had previously imported Algerian LPG before shifting focus to Middle Eastern producers.<\/p>\n
For Algeria, this agreement opens a significant new market outlet for LPG in India, contributing to Sonatrach's strategy of diversifying its energy export destinations beyond European markets. This move underscores Algeria's growing role in ensuring the energy security of its Asian partners. Sonatrach is well-equipped for these operations, possessing dedicated complexes for separating LPG into propane and butane, alongside robust storage and maritime loading facilities. The company exported 6.1 million tons of LPG in 2024, demonstrating its established export capabilities.<\/p>\n
Under the terms of the agreement, Indian Oil is set to receive monthly cargoes ranging from 45,000 to 55,000 metric tons of LPG, comprising both propane and butane, transported by very large gas carriers (VLGCs) on a Free On Board (FOB) basis. This partnership aligns with India's broader strategy to diversify its LPG supply sources and reduce reliance on Middle Eastern suppliers, a strategy influenced by disruptions in the Strait of Hormuz and regional geopolitical volatility. The renewed relationship also follows India's resumption of Algerian LPG imports in June 2026, with preliminary trade data indicating approximately 110,000 tons of Algerian LPG expected in India during August 2026, ahead of the long-term agreement's formal commencement.<\/p>\n","protected":false},"excerpt":{"rendered":"
Sonatrach has secured a long-term agreement with Indian Oil Corp for monthly LPG cargoes starting in 2027, marking the return of a historical partnership and diversifying Algeria’s energy export markets.<\/p>\n","protected":false},"author":1,"featured_media":69312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rank_math_lock_modified_date":false,"cybocfi_hide_featured_image":"","iawp_total_views":3,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-69313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-algeria"],"acf":[],"_links":{"self":[{"href":"https:\/\/dzwatch.dz\/index.php?rest_route=\/wp\/v2\/posts\/69313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dzwatch.dz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dzwatch.dz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dzwatch.dz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dzwatch.dz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=69313"}],"version-history":[{"count":0,"href":"https:\/\/dzwatch.dz\/index.php?rest_route=\/wp\/v2\/posts\/69313\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dzwatch.dz\/index.php?rest_route=\/wp\/v2\/media\/69312"}],"wp:attachment":[{"href":"https:\/\/dzwatch.dz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=69313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dzwatch.dz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=69313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dzwatch.dz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=69313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}