Industrial activity across northern and littoral Argentina is facing severe disruption as natural gas rationing intensifies, with industry sources indicating that approximately 50% of factories in these regions are now experiencing supply cuts.

The shortage stems from a combination of neglected transport infrastructure and a failure to secure sufficient liquefied natural gas (LNG) imports to bridge the gap.

The lack of investment in gas transport networks has left industrial consumers vulnerable to supply shocks, according to reports from Pagina/12.

The government’s decision to defer critical maintenance and expansion projects has exacerbated the situation, forcing manufacturers to operate at reduced capacity or halt production entirely.

This development underscores the growing fragility of Argentina’s energy supply chain.

With industrial demand remaining a key pillar of the economy, the inability to deliver consistent gas supplies threatens to widen the output gap and increase inflationary pressures from supply-side constraints.