Last Updated:
Around 50,000 tonnes of LPG have been shipped by Argentina in just three months—more than double the total 2025 supply
A quick comparison reveals that there were virtually no shipments before 2024 and the surge can be read as a direct response to the current supply crisis. (PTI)
As conflict in West Asia disrupts critical energy routes and squeezes supplies, India has been forced into a rapid and strategic rethink of its LPG sourcing. While the Gulf has traditionally dominated India’s cooking gas imports, a distant player, Argentina, has suddenly emerged as a crucial fall-back supplier.
India’s dependence on the Gulf for LPG is overwhelming, with Reuters pegging the figure at nearly 90 per cent of the country’s imports. However, the ongoing Iran-linked conflict has disrupted shipments through the Strait of Hormuz, stranding tankers and tightening supply.
This has triggered supply shortages domestically, industrial disruptions as well as government intervention to prioritise household consumption. As a result, Indian buyers have been forced to look beyond traditional suppliers as quickly as possible.
This is where Argentina has stepped in.
The country has dramatically ramped up LPG shipments to India beginning early 2026. According to Argus Media and The Economic Times, around 50,000 tonnes of LPG have been shipped in just three months—more than double the total 2025 supply.
A quick comparison reveals that there were virtually no shipments before 2024 and the surge can be read as a direct response to the current supply crisis.
Even after the conflict began, Argentina continued dispatching cargoes, positioning itself as a reliable emergency supplier. With its unhindered supply, Argentina has moved from a marginal player to a critical backup source almost overnight.
A crucial question then is—how was Argentina able to scale up so quickly? The answer lies in both production capacity and timing.
Argentina’s LPG output is backed by its growing natural gas sector, including shale resources like Vaca Muerta. This has enabled rising production levels, availability of exportable surplus, and the flexibility to divert cargoes to new markets. According to Discovery Alert, key export hubs like Bahia Blanca have already been shipping significant volumes to India.
Additionally, Argentine companies are expanding processing capacity and targeting export markets more aggressively. This makes Argentina one of the few countries able to quickly plug short-term supply gaps.
So, can Argentina be the perfect replacement for Gulf supplies? Not really.
While Argentina offers some relief to India, there are serious logistical constraints:
• Shipments take significantly longer than Gulf cargoes
• Freight costs are higher
• Immediate supply replacement is difficult at scale
Even industry reports suggest that while diversification helps, replacing Middle Eastern LPG fully is not feasible in the short term. Simply put, Argentina is a buffer but not a complete substitute.
What Does This Mean For India’s Energy Strategy?
The Argentina pivot highlights a deeper shift in India’s approach from dependence to diversification. India is now actively sourcing LPG from Argentina, United States, and other non-Gulf suppliers. This also means India is looking at crisis partnerships apart from routine trade.
Argentina’s rapid rise as an LPG supplier to India shows how energy alliances can shift quickly under pressure. What began as an emergency procurement move is now evolving into a broader partnership that could outlast the current crisis.
But the lesson for India is clear: In a world of unstable supply chains, energy security will depend less on where the fuel comes from and more on how many options you have.
March 23, 2026, 11:38 IST
Read More
Source link
[ad_3]
