Argentina has significantly increased its supply of liquefied petroleum gas (LPG) to India in recent months, stepping in to meet rising demand caused by disruptions linked to the West Asia conflict. According to people familiar with the matter, this sharp rise in shipments highlights Argentina’s growing role in India’s energy supply chain. The South American nation has quickly positioned itself as an important alternative supplier at a time when traditional sources are facing challenges.

In the first three months of 2026 alone, Argentina exported around 50,000 tonnes of LPG to India. This is more than double the 22,000 tonnes it supplied throughout the entire year of 2025. A large portion of these shipments, nearly 39,000 tonnes, was sent from the Port of Bahia Blanca before the conflict intensified. Additionally, another cargo of about 11,000 tonnes was dispatched on March 5, showing that supplies have continued even after the outbreak of the war.

Argentina’s LPG production is largely driven by its natural gas output, and recent data reflect a steady rise in capacity. Government figures show that LPG production reached 259,000 tonnes in January 2026 alone. On an annual basis, the country produced 2.63 million tonnes in 2025, up slightly from 2.6 million tonnes in 2024. This gradual increase in production has enabled Argentina to expand its export commitments, including to India, which is now emerging as a key destination.

Interestingly, Argentina had not supplied any LPG to India before 2024. However, in just a short period, the country has managed to establish itself in the Indian market. The report notes that the South American nation is now looking to further increase its share in India’s LPG imports. This shift reflects changing global trade patterns, where countries are exploring new partnerships to ensure stable energy supplies in uncertain times.

Looking ahead, Argentina is also working on expanding its infrastructure to boost output further. The country plans to commission a new natural gas liquids fractionation unit at its Bahia Blanca processing plant in 2026. This facility is expected to increase the volume of processed LPG, with a significant portion intended for export markets like India. Such developments indicate that Argentina is preparing for a long-term role in global energy supply chains.

Beyond energy, the relationship between Argentina and India has been strengthening across several sectors. Trade between the two countries has seen notable growth, with bilateral trade increasing by 36.77% to reach $6.34 billion between January and November 2025. India is now Argentina’s fifth-largest trading partner as well as a major export destination, reflecting the growing economic ties between the two nations.

Argentina has long been an important supplier of edible oils to India, especially soybean oil. Other imports from Argentina include sunflower oil, finished leather, cereals, residual chemicals, and pulses. These products have played a key role in supporting India’s domestic needs, further strengthening trade relations between the two countries.

In recent years, cooperation has also expanded into the energy and mining sectors. Hydrocarbons and critical minerals are emerging as important areas of collaboration. In February 2023, an agreement was signed between ONGC Videsh Ltd and YPF to promote joint efforts in oil and gas exploration and development. This partnership reflects a shared interest in strengthening energy security and exploring new opportunities.

Another significant step was taken in the field of lithium resources, which are crucial for battery production and renewable energy technologies. On January 15, 2024, Khanij Bidesh India Ltd signed an agreement with Catamarca Minera y Energetica Sociedad del Estado. The agreement allows the Indian company to lease five lithium blocks for exploration and future development. This marks India’s first overseas acquisition of lithium assets, highlighting the importance of Argentina in meeting India’s growing demand for critical minerals.

Overall, Argentina’s rising LPG exports to India reflect a broader shift in global trade and energy partnerships. As supply chains adjust to geopolitical tensions, countries are increasingly turning to new partners to ensure stability. With growing trade, expanding cooperation in energy and minerals, and plans for increased production capacity, Argentina is set to play an even more important role in India’s economic and energy landscape in the coming years.