India Turns to Argentina for LPG Amid Middle East Tensions
Impact of Middle East Tensions on LPG Supply
As tensions rise in the Middle East due to the ongoing conflict involving Iran, Indian households are facing significant challenges regarding the availability of LPG cylinders. The crisis has escalated to the point where citizens are experiencing long wait times and are forced to purchase from black markets at inflated prices. Many shops have even had to close their doors due to the ongoing situation. India heavily relies on the Gulf region for its LPG imports, with estimates indicating that nearly 90% of its supplies come from there.
In response to this crisis, India is reportedly looking to the United States for immediate supplies, but an unexpected ally has emerged in this shift—Argentina. Since early 2026, shipments from Argentina have surged, with approximately 50,000 tonnes of LPG delivered to India within just three months, as reported by various sources. Government data reveals that Argentina's LPG production, driven by natural gas, reached 259,000 tonnes in January alone, more than doubling the total volume supplied throughout 2025.
Argentina's increased natural gas output, bolstered by its extensive shale reserves like Vaca Muerta, has led to a rise in LPG production and a surplus available for export. The port of Bahia Blanca in Argentina has been consistently sending significant volumes to India, demonstrating that the necessary logistics and infrastructure are in place to facilitate this trade.
Strengthening Economic Ties Between India and Argentina
India has long regarded Argentina as a vital economic partner, with the South American nation being its fifth-largest trading partner. From January to November 2025, bilateral trade between the two countries increased by 36.77%, reaching $6.34 billion. Argentina is a key supplier of edible oils, particularly soybean oil, along with other important imports such as sunflower oil, finished leather, cereals, residual chemicals, and pulses.
A significant milestone in their bilateral relations occurred in February 2023 when agreements were signed to enhance collaboration in the oil and gas sector between ONGC Videsh Ltd and Argentina's state-owned YPF. Plans are underway to launch a new natural gas liquids (NGL) fractionation train at the Bahia Blanca processing facility in early 2026, which is expected to boost processed NGL production to over 7,000 tonnes per day, targeting export markets, according to reports.
To address the domestic LPG supply crisis, Indian authorities have prioritized logistics for LPG transportation. Ports like Kandla have been directed to prioritize LPG carriers, following instructions from the Ministry of Ports, Shipping and Waterways to ensure a steady supply. Recent ship-tracking data indicates that two Indian-flagged gas carriers, Jag Vasant and Pine Gas, have successfully navigated the strategically important Strait of Hormuz. These vessels, classified as very large gas carriers, were observed following a route near the Iranian coastline, a path increasingly utilized by ships that have received clearance from Iran, mirroring the passage taken by earlier vessels that managed to traverse the conflict-affected corridor.