The company has initiated a tender for vessels with capacities ranging from 80,000 to 93,500 cubic meters, stipulating that all ships must be no more than 12 years old. Interested parties must submit technical and commercial bids by September 7, following a pre-bid meeting scheduled for August 5. Once acquired, these vessels will transition to the Indian flag.

This shift addresses the significant freight hurdles associated with sourcing energy from the U.S. Gulf Coast, which involves a much longer transit compared to traditional suppliers in Saudi Arabia, the UAE, and Qatar. While U.S. propane and butane remain price-competitive, volatile charter-market rates often erode these savings. Direct vessel ownership provides a hedge against the supply chain disruptions that plagued India earlier this year when regional conflicts in the Middle East threatened shipments through the Strait of Hormuz.

Beyond immediate logistical security, the move aligns with a broader geopolitical strategy to increase bilateral trade with the United States to $500 billion by 2030. Indian Oil, alongside Bharat Petroleum and Hindustan Petroleum, is currently preparing tenders for U.S. supplies, anticipating that national LPG consumption will climb to roughly 31 million metric tons next year.