Sonatrach reported close to an LPG supply deal with Indian Oil for 2027
Algeria · last week
Reports on 20 August 2026 said Indian Oil Corporation, India's largest refiner, is close to concluding a long-term agreement with Algeria's Sonatrach to import liquefied petroleum gas in 2027.
Under the terms reported, Indian Oil would lift one very large gas carrier of 45,000 to 55,000 tonnes a month, a mix of propane and butane, on a free-on-board basis — meaning the buyer carries transport and associated costs once the cargo is loaded.
It forms part of India's effort to diversify LPG supply and reduce dependence on the Middle East after disruption around the Strait of Hormuz, helped by Algerian LPG pricing below the Saudi Aramco Contract Price. Indian Oil previously held a term agreement with Sonatrach before shifting to Middle Eastern suppliers. The report rests on sources and has not been officially confirmed.
Source: Business Today India