Argentina gas shortages strain industry and motorists in winter

A severe winter cold snap has exposed chronic gas supply problems across Argentina. Delays in completing the Perito Moreno gas pipeline and the stalled reversal of the northern Gasoducto Norte have forced the government to keep residential gas flowing while shifting the steep rise in imported LNG costs onto industrial users. The Union Industrial Argentina reports that at least half of firms are considering reduced output or higher prices, with small and medium‑size plants hit hardest.

Industrial sectors are cutting shifts and reorganising production as LNG prices jumped from about $11 to $23‑$26 per million BTU after the Middle‑East conflict. Senator Carolina Moisés blamed President Javier Milei, saying, “El principal responsable de la paralización de la obra del reversal norte es Javier Milei.” Provinces in the north—Jujuy, Salta and Tucumán—are confronting price disparities of $27 versus $3 per million BTU in other regions.

The shortage also ripples to motorists. In La Plata and other cities, GNC stations operating under interruptible contracts face daily caps, creating queues that can exceed two hours and stretch over 20 days. Similar disruptions occurred in Paraná, where a pressure drop forced both homes and several GNC stations to shut down until service can be restored.

Overall, the combination of infrastructure bottlenecks, high international LNG prices and policy decisions to protect household tariffs is pressuring Argentina’s industrial competitiveness and daily life during the polar cold wave.