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[BUSINESS] · Argentina · 2 sources

Argentina imposes gas supply cuts to curb shortages amid winter demand

Rising cold temperatures have pushed Argentina's gas system to the limit, prompting authorities to reinstate restrictions on compressed natural gas (CNG) stations and industrial users with interruptible contracts. The measures, announced as indefinite, aim to prioritize supply for homes, schools and hospitals as total gas demand nears 150 000 m³, with residential use around 70 000 m³.

The cuts now affect about 130 factories, mainly in Córdoba, the Litoral and the Northwest (NOA). While normally only firms with interruptible contracts face limits, the shortage has also reached companies with firm or semi‑firm contracts, raising operational costs. Industrial groups warn that the scarcity, combined with a jump in LNG prices from $10 to $22 per MMBtu due to the Middle‑East conflict, threatens competitiveness, could drive up inflation and jeopardize employment.

Industry representatives have called for clear, predictable energy rules and sufficient supply to sustain production and investment throughout the winter period.