Kamal Ghorui
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 Steps Up LPG Supply To India
Argentina has increased its supply of LPG to India as shortages emerge following disruptions caused by the West Asia conflict, according to people aware of the development.During the first three months of 2026, Argentina exported 50,000 tonnes of LPG to India, more than twice the 22,000 tonnes shipped in 2025. Of this, around 39,000 tonnes had already been sent from the Port of Bahia Blanca before the conflict began, while an additional cargo of 11,000 tonnes was dispatched on 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 supply disruptions?Data from the Argentine government showed that LPG output, largely derived from natural gas, stood at 259,000 tonnes in January 2026. On an annual basis, production increased to 2.63 million tonnes in 2025, up from 2.6 million tonnes in 2024.Argentina had not supplied LPG to India prior to 2024. However, the country is now expected to expand its presence in India’s LPG market, according to sources familiar with the matter.Argentina is set to operationalise a new natural gas liquids fractionation facility at its Bahia Blanca processing complex in 2026, a move expected to increase output capacity, with the additional volumes primarily targeted at export markets.The country is also strengthening its role as an important economic partner for India in South America. Bilateral trade between the two nations grew by 36.77 per cent to $6.34 billion during the January to November 2025 period. India currently ranks as Argentina’s fifth-largest trading partner as well as a key destination for its exports.Argentina remains a significant supplier of edible oils to India, especially soybean oil. Other major imports from the country include sunflower oil, finished leather, cereals, residual chemicals and pulses. In addition, cooperation is expanding into hydrocarbons and critical minerals.In this context, ONGC Videsh Ltd signed agreements with Argentina’s state-run energy firm YPF in February 2023 to enhance collaboration in the oil and gas sector. Further, marking its first overseas lithium asset acquisition, state-owned Khanij Bidesh India Ltd entered into an agreement on January 15, 2024, with Catamarca Minera y Energetica Sociedad del Estado to lease five lithium blocks for exploration and future development.
US Also Emerges As Big Alternative to Gulf LPG
India has also stepped up purchase of LPG from the US. It is increasingly relying on the United States to ease its ongoing LPG supply crunch as the conflict in the Middle East continues.According to an S&P Global Energy report, India is working to diversify its LPG import sources, boost refinery production, and step up diplomatic efforts to ensure uninterrupted availability of cooking fuel for households as well as critical services such as hospitals and educational institutions during the crisis.Also Read | Securing LPG, LNG, crude oil: India plans evacuation for ships near Strait of Hormuz – here’s what’s being consideredAnmol Bhushan, associate director for LPG at S&P Global Energy CERA, said, “India is increasingly turning to the US for LPG as geopolitical tensions reshape global trade flows.”Data from CAS indicates that imports of US-origin LPG into India have been rising steadily, with volumes now surpassing those sourced from traditional suppliers in the Gulf region.Indian oil marketing companies have also secured a long-term agreement to procure 2.2 million metric tonnes of LPG from the US in 2026, which is equivalent to roughly four very large gas carrier shipments each month. In the first two months of 2026 alone, India imported close to 480,000 metric tonnes of LPG from the US, amounting to around 11 VLGC cargoes.
