Hindustan Petroleum Corporation Limited (HPCL) has issued a clarification on reports of the firm seeking long-term liquefied petroleum gas (LPG) contracts with Norway's Equinor.

What Happened: On Tuesday, Mint reported that a consortium consisting of Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Ltd (HPCL) and Bharat Petroleum Corporation Ltd (BPCL) were in talks with Equinor for LPG contracts to diversify sourcing away from traditional Middle Eastern suppliers amid escalating regional tensions.

HPCL has confirmed the developments after the NSE sought clarification on the report. The market regulator has also asked BPCL to clarify. The company has not replied yet.

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"Discussions for procuring LPG from Mis Equinor India Pvt Ltd are in the ordinary course of business," Hindustan Petroleum said in a statement released last evening. The company added that it is in discussions to procure LPG on ex tank basis at Mundra.

The company further added that it did not inform the exchanges of the developments because the talks are still in the initial stages and no strategic tie-up, contract or agreement has been executed.

Discussions with Equinor are vital because LPG accounts for about 62% of all cooking fuels used in Indian households, with over 60% of LPG being imported.

Price Action: HPCL was trading 0.38% higher at ₹398 on Wednesday.

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