Argentina has increased its LPG supplies to India amid shortages caused by the ongoing conflict in the Middle East. Argentina shipped 50,000 metric tonnes of LPG to India between January and March 2026, more than double the 22,000 tonnes supplied in 2025. About 39,000 tonnes of LPG were shipped from the Bahia Blanca port before the war began, and another cargo of 11,000 tonnes was sent on March 5.

LPG Production In Argentina

According to Argentina Government data, Argentina's natural gas-driven LPG production stood at 259,000 tons in January 2026. Annual production is projected to increase from 2.6 million tonnes in 2024 to 2.63 million tonnes in 2025. Significantly, there were no LPG shipments from Argentina to India before 2024.

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Argentina Prepares To Increase Its Share In LPG Market

As per media reports, Argentina is preparing to expand its presence in India’s LPG market. As part of this strategy, the country will bring a new natural gas liquids fractionation unit at the Bahia Blanca processing facility in 2026, boosting processing capacity and creating surplus output for export.

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Trade Between India And Argentina

Argentina is becoming an important economic ally for India in South America, with bilateral trade reaching USD 6.34 billion between January and November 2025. This marks a 36.77 per cent growth. This expansion has positioned India as Argentina’s fifth-largest trading partner as well as a key export destination.

India relies on Argentina for several imports, especially edible oils such as soybean and sunflower oil. In addition, the country supplies India with finished leather, cereals, residual chemicals, and pulses.

Situation In India

The Ministry of Petroleum and Natural Gas has provided major relief to the states and union territories amid the current gas crisis. The government has increased the gas allocation to 50 per cent of the pre-crisis level. Under this, an additional 20 per cent of LPG will be supplied to the states from March 23.

Petroleum Secretary Dr Neeraj Mittal, in a letter to the Chief Secretaries of all the states and union territories, said that the main objective of this additional allocation is to provide help to key sectors related to food supply and public welfare.