Argentina’s industrial sector is confronting a deepening energy crisis as soaring liquefied natural gas (LNG) import costs collide with intensifying geopolitical risks in the Persian Gulf.
The collapse of a ceasefire in the region has exacerbated supply concerns, pushing up global energy prices and squeezing an economy already struggling with domestic shortages.
The situation creates a severe "sandwich effect" for Argentine manufacturers, according to analysis from the consulting firm Industria y Desarrollo (I+D), led by former UIA executive director Diego Coatz.
Factories are caught between rising input costs driven by global LNG prices and constrained domestic supply, limiting their ability to pass on expenses or maintain output levels.
This external pressure compounds an existing domestic emergency.
Industrial activity across northern and littoral Argentina has been severely disrupted by natural gas rationing, with industry sources indicating that approximately 50% of factories in these regions are now operating at reduced capacity or have halted production entirely. The winter season typically drives higher demand, but the current supply constraints are forcing difficult operational decisions.