Vaca Muerta Positions Argentina to Become Top-Five Global LPG Exporter as Production Reaches Two-Decade High

Argentina produced 3 million tons of LPG during 2025, the highest volume in two decades, with more than half reaching export markets. The propane-butano mix emerges as a byproduct of natural gas processing in Neuquén, where expanding shale operations generate increasing volumes of associated liquids. Federico Veller, Undersecretary of Hydrocarbons, emphasized that exports are no longer hypothetical but a functioning business supported by operational data. The country exported approximately 22,000 tons to India in 2025 and surpassed 50,000 tons in the first half of 2026, demonstrating access to high-growth Asian markets.

YPF’s Midstream Director Pedro Locreille projects Argentina will rise from 14th to between fifth and seventh place among global LPG exporters during the next decade. National production could reach 8.9 million tons annually by 2032, requiring Argentina to secure buyers beyond regional partners in Brazil, Chile and Peru. Asia-Pacific accounts for 60 percent of worldwide LPG demand, with China and India representing the largest markets. Julio Faldin of ARGUS consultancy noted that Argentina could reach 8 million tons annually by 2040, positioning the country among the top five global exporters.

Infrastructure constraints now define the sector’s bottleneck rather than production limits. TGS CEO Oscar Sardi outlined a comprehensive natural gas liquids project encompassing a gathering network, processing plant, pipeline to Bahía Blanca, fractionation facilities and a new port terminal. The four-year construction program will generate 4,000 direct jobs and 15,000 indirect positions while enabling approximately USD 1.2 billion in annual exports. Compañía Mega, majority-owned by YPF with Petrobras and Dow participation, received RIGI approval for a USD 365 million expansion increasing LPG processing capacity 27 percent. The project will boost daily throughput from 4,800 to 7,200 tons, with 80 percent of additional volume destined for export markets.

Roberto Carnicer of Universidad Austral’s Energy Institute calculated that with Mega’s expansion, the TGS project and potential developments linked to LNG facilities in Río Negro, Argentina could reach 4.8 million tons of LPG capacity by 2030. Export volumes could exceed 3 million tons annually without including the Río Negro projects. The global LPG market totals USD 380 billion, with only 19 countries functioning as exporters while more than 100 nations import the fuel. Regional demand remains substantial as Latin America depends heavily on supplies from outside the continent, primarily the United States, creating opportunity for Argentina to diversify hemispheric sourcing.