Two India-flagged VLGCs are transiting the Strait of Hormuz amid heightened geopolitical tensions that have disrupted LPG supply routes.
Supply constraints from key exporters such as Qatar and the UAE have intensified concerns over India’s LPG availability.
Argentina has increased LPG shipments to India, highlighting New Delhi’s push to diversify fuel sourcing beyond West Asia.
Two Indian-flagged vessels carrying liquefied petroleum gas (LPG) are making their way through the Strait of Hormuz, Bloomberg reported, citing ship-tracking data. The Jag Vasant and the Pine Gas — two India-flagged very large gas carriers (VLGCs) — are taking a route that hugs the Iranian coastline.
The vessels travelled northwards from the United Arab Emirates coast toward Iran’s Qeshm and Larak islands early Monday, the report said. The two supertankers were signalling Indian ownership instead of a destination but are likely to be heading to India.
2 March 2026
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India has been facing one of the largest LPG crises in recent years, owing to shipments being stuck in the Strait and a reduction in output from major fuel-exporting countries, including Qatar and the UAE.
The two Indian-flagged tankers follow two other Indian-flagged LPG vessels that made the transit last week. Following the combined military attack by the US and Israel against Iran on February 28, which reportedly killed Iran’s Supremo Ali Khamenei, Iran shut down the Strait of Hormuz, bringing a crucial global trade route to a near standstill.
Crude prices spiked to multi-year highs, while the US waived sanctions on Russian oil to prevent prices from breaching the psychologically crucial $150 per barrel mark, which could trigger a global economic slowdown and potential recession.
Amid rising concerns over LPG supplies, Argentina has stepped up shipments to India to ease shortages. Unlike crude stockpiles, India does not have sufficient strategic reserves for LPG and LNG. The escalation of tensions in West Asia has exposed the vulnerabilities of relying on ‘just-in-time’ fuel supplies.
Argentina Emerges as Surprise Supplier
According to a report by The Economic Times, Argentina shipped 50,000 tonnes of LPG to India between January and March 2026 — more than double the volumes recorded a year earlier. There were no LPG shipments from Argentina before 2024. Argentina plans to commission a new natural gas liquids fractionation unit at its Bahia Blanca processing plant in 2026, which is expected to boost processed output, with additional volumes earmarked for export.
Argentina’s natural gas-driven LPG production stood at 259,000 tonnes in January, while annual output rose to 2.63 million tonnes in 2025, compared with 2.3 million tonnes the previous year. Amid New Delhi’s push to diversify fuel supplies, South America is emerging as a reliable partner. Bilateral trade between India and Argentina rose 36.77% to $6.34 billion between January and November 2025. India is Argentina’s fifth-largest trading partner and export market.
