LPG crisis: Argentina emerges as key supplier as shipments double in early 2026

LPG crisis: India’s imports of LPG from Argentina person much than doubled successful the archetypal fewer months of 2026 arsenic the ongoing struggle successful the Middle East continues to disrupt supplies of liquified petroleum state for India.

India is babelike connected planetary proviso for a large information of its LPG needs and estimates suggest that 60% of imports travel done the Strait of Hormuz which has successful effect been unopen for harmless transition since the commencement of the US-Iran war. India’s diplomatic engagement with Iran has resulted successful immoderate LPG tankers transiting successfully done the Strait of Hormuz, but regular proviso remains impacted, which successful crook has caused a rationalisation of LPG proviso domestically, particularly for commercialized users.

Argentina Steps Up LPG Supply To India

Argentina has accrued its proviso of LPG to India arsenic shortages look pursuing disruptions caused by the West Asia conflict, according to radical alert of the development.During the archetypal 3 months of 2026, Argentina exported 50,000 tonnes of LPG to India, much than doubly the 22,000 tonnes shipped successful 2025. Of this, astir 39,000 tonnes had already been sent from the Port of Bahia Blanca earlier the struggle began, portion an further cargo of 11,000 tonnes was dispatched connected March 5, according to an ET report.

Also Read | Trump sanctions waiver for Iran crude oil: What does it mean for India amid Strait of Hormuz proviso disruptions?Data from the Argentine authorities showed that LPG output, mostly derived from earthy gas, stood astatine 259,000 tonnes successful January 2026. On an yearly basis, accumulation accrued to 2.63 cardinal tonnes successful 2025, up from 2.6 cardinal tonnes successful 2024.Argentina had not supplied LPG to India anterior to 2024. However, the state is present expected to grow its beingness successful India’s LPG market, according to sources acquainted with the matter.Argentina is acceptable to operationalise a caller earthy state liquids fractionation installation astatine its Bahia Blanca processing analyzable successful 2026, a determination expected to summation output capacity, with the further volumes chiefly targeted astatine export markets.The state is besides strengthening its relation arsenic an important economical spouse for India successful South America. Bilateral commercialized betwixt the 2 nations grew by 36.77 per cent to $6.34 cardinal during the January to November 2025 period.

India presently ranks arsenic Argentina’s fifth-largest trading spouse arsenic good arsenic a cardinal destination for its exports.Argentina remains a important supplier of edible oils to India, particularly soybean oil. Other large imports from the state see sunflower oil, finished leather, cereals, residual chemicals and pulses. In addition, practice is expanding into hydrocarbons and captious minerals.In this context, ONGC Videsh Ltd signed agreements with Argentina’s state-run vigor steadfast YPF successful February 2023 to heighten collaboration successful the lipid and state sector.

Further, marking its archetypal overseas lithium plus acquisition, state-owned Khanij Bidesh India Ltd entered into an statement connected January 15, 2024, with Catamarca Minera y Energetica Sociedad del Estado to lease 5 lithium blocks for exploration and aboriginal development.

US Also Emerges As Big Alternative to Gulf LPG

India has besides stepped up acquisition of LPG from the US. It is progressively relying connected the United States to easiness its ongoing LPG proviso crunch arsenic the struggle successful the Middle East continues.According to an S&P Global Energy report, India is moving to diversify its LPG import sources, boost refinery production, and measurement up diplomatic efforts to guarantee uninterrupted availability of cooking substance for households arsenic good arsenic captious services specified arsenic hospitals and acquisition institutions during the crisis.Also Read | Securing LPG, LNG, crude oil: India plans evacuation for ships adjacent Strait of Hormuz - here’s what’s being consideredAnmol Bhushan, subordinate manager for LPG astatine S&P Global Energy CERA, said, “India is progressively turning to the US for LPG arsenic geopolitical tensions reshape planetary commercialized flows.”Data from CAS indicates that imports of US-origin LPG into India person been rising steadily, with volumes present surpassing those sourced from accepted suppliers successful the Gulf region.Indian lipid selling companies person besides secured a semipermanent statement to procure 2.2 cardinal metric tonnes of LPG from the US successful 2026, which is equivalent to astir 4 precise ample state bearer shipments each month. In the archetypal 2 months of 2026 alone, India imported adjacent to 480,000 metric tonnes of LPG from the US, amounting to astir 11 VLGC cargoes.