India's LPG Imports from Argentina Surge Amid Middle East Supply Disruptions
India has significantly increased its imports of liquefied petroleum gas (LPG) from Argentina, with volumes more than doubling in the first few months of 2026. This strategic shift comes as the ongoing conflict in the Middle East, particularly involving the US, Israel, and Iran, continues to severely disrupt traditional LPG supplies. The crisis has forced India to seek alternative sources to meet its domestic demand, especially for commercial users.
Argentina Steps Up as Key LPG Supplier
According to reports, Argentina exported 50,000 tonnes of LPG to India during the first three months of 2026, a substantial increase from the 22,000 tonnes shipped in 2025. Of this total, approximately 39,000 tonnes were dispatched from the Port of Bahia Blanca before the conflict escalated, with an additional 11,000 tonnes sent on March 5. Prior to 2024, Argentina had not supplied LPG to India, marking a rapid expansion in bilateral trade relations.
Argentina's LPG production, largely derived from natural gas, reached 259,000 tonnes in January 2026. On an annual basis, output increased to 2.63 million tonnes in 2025, up from 2.6 million tonnes in 2024. The country is expected to further boost its capacity with a new natural gas liquids fractionation facility at the Bahia Blanca processing complex, operational in 2026, targeting export markets like India.
Impact of Middle East Conflict on Indian LPG Supply
India relies heavily on global imports for its LPG needs, with an estimated 60% of imports traditionally passing through the Strait of Hormuz. Since the onset of the US-Iran war, this critical shipping route has been effectively shut for safe passage, causing major supply disruptions. While diplomatic efforts with Iran have allowed some LPG tankers to transit successfully, regular supply remains impacted, leading to domestic rationalization of LPG, particularly for commercial sectors.
The geopolitical tensions have reshaped global trade flows, prompting India to diversify its import sources. In addition to Argentina, the United States has emerged as a significant alternative supplier. Data indicates that imports of US-origin LPG into India are now surpassing volumes from traditional Gulf region suppliers.
Strengthening India-Argentina Economic Partnership
Beyond LPG, Argentina is strengthening its role as a crucial economic partner for India in South America. Bilateral trade between the two nations grew by 36.77% to $6.34 billion during January to November 2025, with India ranking as Argentina's fifth-largest trading partner. Key imports from Argentina include:
- Soybean oil and sunflower oil
- Finished leather
- Cereals and pulses
- Residual chemicals
Cooperation is expanding into hydrocarbons and critical minerals. For instance, 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. Additionally, Khanij Bidesh India Ltd secured its first overseas lithium asset acquisition in January 2024, leasing five lithium blocks in Argentina for exploration and development.
US as Major Alternative LPG Source
India is increasingly turning to the United States to alleviate its LPG supply crunch. According to S&P Global Energy, India is working to diversify import sources, boost refinery production, and intensify diplomatic efforts to ensure uninterrupted availability of cooking fuel for households and critical services like hospitals and schools.
Anmol Bhushan, associate director for LPG at S&P Global Energy CERA, stated, "India is increasingly turning to the US for LPG as geopolitical tensions reshape global trade flows." Indian oil marketing companies have secured a long-term agreement to procure 2.2 million metric tonnes of LPG from the US in 2026, equivalent to roughly four very large gas carrier shipments monthly. In the first two months of 2026 alone, India imported close to 480,000 metric tonnes from the US, amounting to around 11 VLGC cargoes.
This diversification strategy underscores India's proactive measures to mitigate supply risks and ensure energy security amid ongoing global conflicts.
