India has found support from Argentina amid the ongoing gas shortage triggered by tensions in the Middle East. The South American country has sharply increased its LPG (liquefied petroleum gas) supply to India in recent months.
Between January and March 2026, Argentina shipped 50,000 metric tonnes of LPG to India, more than double the 22,000 tonnes supplied in 2025. Of this, around 39,000 tonnes were shipped from the Bahia Blanca port before the conflict escalated, while another 11,000 tonnes were sent on March 5.
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Argentina expands LPG role
As per reports, Argentina’s LPG production, driven by natural gas, stood at 259,000 tonnes in January 2026, according to government data. Annual production is expected to rise from 2.6 million tonnes in 2024 to 2.63 million tonnes in 2025.
Notably, Argentina had not exported LPG to India before 2024. Now, the country is preparing to further expand its role in India’s LPG market. As part of this plan, a new natural gas liquids fractionation unit will be set up at the Bahia Blanca facility in 2026, which is expected to increase processing capacity and create surplus output for export.
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Trade ties between the two countries have also strengthened. Bilateral trade reached USD 6.34 billion between January and November 2025, marking a growth of 36.77 per cent. India is now Argentina’s fifth-largest trading partner and a key export destination.
Apart from LPG, India imports edible oils such as soybean and sunflower oil from Argentina, along with products like finished leather, cereals, residual chemicals and pulses.
Relief measures in India
Amid the ongoing crisis, the Ministry of Petroleum and Natural Gas has taken steps to ease the situation. The government has increased gas allocation to 50 per cent of pre-crisis levels, with an additional 20 per cent of LPG supply being provided to states and union territories from March 23.
Petroleum Secretary Dr Neeraj Mittal, in a letter to Chief Secretaries, said that the additional supply aims to support essential sectors linked to food distribution and public welfare.
