IOC, HPCL and BPCL To Join Forces to Secure LPG Deal with Equinor Amid Rising Tensions in West Asia

A group of India’s top oil companies—Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Ltd (HPCL), and Bharat Petroleum Corporation Ltd (BPCL)—is in talks with Norway’s Equinor to secure a contract for Liquefied Petroleum Gas (LPG). This comes as tensions rise in West Asia, which could affect energy prices and supply, especially with India relying heavily on countries like the UAE, Qatar, Saudi Arabia, and Kuwait for its LPG needs.

An insider shared that discussions with Equinor are focused on sourcing LPG from Norway, with the terms and commercial details still being worked out. This move to diversify India’s LPG sources is important, given that LPG is used in 62% of Indian households for cooking, with over 60% of it being imported.

LPG is a new area of focus between India and Equinor, who are already discussing other energy-related collaborations. These include Equinor’s involvement in India’s strategic petroleum reserves and long-term deals for supplying Liquified Natural Gas (LNG).

While Indian officials and Equinor declined to comment on the ongoing discussions, it’s clear that India is looking to secure more stable and diverse sources of LPG, similar to its strategy for crude oil. India has been expanding its oil suppliers to include countries like Colombia, Brazil, and Libya, in addition to its major suppliers.

India’s LPG market has seen significant growth, driven by government initiatives like the Pradhan Mantri Ujjwala Yojana (PMUY), which has increased LPG demand by providing stoves and connections to families below the poverty line. As LPG demand continues to rise, India will need to import even more to meet its needs, despite its capacity to produce other fuels.

Equinor is also involved in other clean energy projects with Indian companies, such as carbon capture, offshore wind, and green hydrogen. These efforts are part of India’s broader strategy to enhance its energy security, as the country relies heavily on imports for its oil and gas needs.

With global energy prices being volatile, securing long-term deals with reliable partners like Equinor is crucial for India to manage its energy costs and ensure a steady supply of essential fuels.