Argentina's industrial gas supply crisis forces plant shutdowns

The Argentine government’s decision to prioritize household gas during a severe winter has sharply reduced the supply available to industry. Restrictions on transported gas and higher costs for imported liquefied natural gas (LNG) have forced factories in the north—particularly in Tucumán, Salta and Jujuy—to consider cutting or halting production. Prices for imported gas in the north have risen to about US$18 per million BTU, roughly nine times the US$3 price paid in Buenos York, prompting unions to warn that the citrus and sugar “zafra” could be jeopardised. The Unión Industrial Argentina (UIA) reports that at least half of the affected firms may lower activity, while the Unión Industrial de Tucumán likened the situation to “kelpers”, expressing a feeling of abandonment. Industrial bodies have demanded clearer, transparent rules and a temporary subsidy to offset the cost gap, but the government has so far rejected such proposals. No immediate changes to the gas allocation scheme are expected, with normalization projected only after the winter season ends.