LPG crisis: India’s imports of LPG from Argentina have more than doubled in the first few months of 2026 as the ongoing conflict in the Middle East continues to disrupt supplies of liquified petroleum gas for India. India is dependent on global supply for a big portion of its LPG needs and estimates suggest that 60% of imports come through the Strait of Hormuz
which has in effect been shut for safe passage since the start of the US-Iran war.India’s diplomatic engagement with Iran has resulted in some LPG tankers transiting successfully through the Strait of Hormuz, but regular supply remains impacted, which in turn has caused a rationalisation of LPG supply domestically, especially for commercial users.
Argentina Boosts LPG Supply To India
Argentina has ramped up its LPG exports to India as supply shortages arise due to disruptions linked to the West Asia conflict, according to sources familiar with the matter.
In the first quarter of 2026, Argentina shipped around 50,000 tonnes of LPG to India, more than double the 22,000 tonnes exported during the same period in 2025. Nearly 39,000 tonnes were dispatched from the Bahia Blanca port before the conflict escalated, while an additional 11,000 tonnes were sent on March 5, as per an ET report.
Argentina government data showed that LPG production, largely sourced from natural gas, reached about 259,000 tonnes in January 2026. On a yearly basis, output rose to 2.63 million tonnes in 2025, compared to 2.6 million tonnes in 2024.
Argentina had not exported LPG to India before 2024, but the country is now expected to expand its footprint in India’s LPG market, according to sources aware of the development.
The country is also preparing to operationalise a new natural gas liquids fractionation facility at its Bahia Blanca complex in 2026. This is expected to boost production capacity, with additional output mainly aimed at export markets.
Argentina is further strengthening its position as a key economic partner for India in South America. Bilateral trade between the two countries increased by 36.77% to $6.34 billion during January–November 2025. India is currently Argentina’s fifth-largest trading partner and a major destination for its exports.
Argentina continues to be an important supplier of edible oils to India, particularly soybean oil. Other key exports include sunflower oil, finished leather, cereals, residual chemicals, and pulses. Cooperation is also expanding into hydrocarbons and critical minerals.
In this context, ONGC Videsh Ltd signed agreements with Argentina’s state-owned energy company YPF in February 2023 to strengthen collaboration in the oil and gas sector. Additionally, Khanij Bidesh India Ltd signed a deal on January 15, 2024, with Catamarca Minera y Energetica Sociedad del Estado to lease five lithium blocks for exploration and future development.
Read More: Argentina’s economy grows 4.4% in 2025, misses expectations slightly
