India’s LPG imports from Argentina have surged in early 2026, more than doubling due to supply disruptions caused by the ongoing Middle East conflict.
Since India relies heavily on global LPG supplies, the situation has worsened because about 60% of its imports pass through the Strait of Hormuz, which has effectively become unsafe since the US-Iran war began.
Argentina Emerges as Key LPG Supplier as Middle East Conflict Disrupts India’s Energy Lifeline
Although diplomatic efforts with Iran have allowed some tankers to pass, supply remains inconsistent, leading to controlled domestic distribution, particularly affecting commercial users.
Meanwhile, Argentina has stepped in to fill the gap, exporting 50,000 tonnes of LPG to India in the first three months of 2026, compared to 22,000 tonnes in all of 2025.
Of this, around 39,000 tonnes were shipped before the conflict escalated, with an additional 11,000 tonnes sent on March 5.
At the same time, Argentina’s LPG production has remained strong, reaching 259,000 tonnes in January 2026, while annual output rose to 2.63 million tonnes in 2025 from 2.6 million tonnes in 2024.
Notably, Argentina only began supplying LPG to India in 2024, but it is now expected to expand its role further in the Indian market.
In addition, a new natural gas liquids facility at Bahia Blanca, set to begin operations in 2026, is expected to boost export capacity.
India – Argentina Trade Surges 36.77%, Strengthening Economic Partnership
Beyond energy, trade ties between the two countries are strengthening, with bilateral trade rising 36.77% to $6.34 billion between January and November 2025, making India Argentina’s fifth-largest trading partner.
Argentina continues to supply India with key goods like soybean oil, sunflower oil, leather, cereals, chemicals, and pulses, while cooperation is also growing in hydrocarbons and critical minerals.
Alongside this, Indian firms have deepened engagement, with ONGC Videsh partnering with YPF in 2023 and Khanij Bidesh India Ltd securing lithium exploration rights in 2024.
At the same time, India is increasingly turning to the United States as another major LPG source. As per reports, “India is increasingly turning to the US for LPG as geopolitical tensions reshape global trade flows.”
Data shows US LPG imports have now overtaken supplies from traditional Gulf exporters. Moreover, Indian oil companies have signed a long-term deal to import 2.2 million metric tonnes of LPG from the US in 2026, equivalent to about four large shipments each month.
In the first two months of 2026 alone, India imported nearly 480,000 metric tonnes from the US, or around 11 large cargo shipments.
