Argentina Liquefied Petroleum Gas (LPG) Market Research Report, 2029

Liquefied Petroleum Gas (LPG), a versatile fuel consisting of propane and butane, has a long and interesting history in Argentina. While data beyond 2014 is limited, we can glean some insights. Domestic production peaked in 2014 at around 39,340 barrels per day, showcasing a period of relative abundance. However, consumption has consistently outpaced production, leading to a reliance on imports, particularly from the United States. Culturally, LPG plays a significant role in Argentina, especially in the northeastern regions. Its affordability compared to gasoline makes it an attractive option for vehicle conversion. This trend is likely to continue, driven by the readily available domestic LPG reserves and the ongoing search for cost-effective fuel alternatives. According to the research report "Argentina Liquefied Petroleum Gas (LPG) Market Research Report, 2029," published by Actual Market Research, the Argentina Liquefied Petroleum Gas (LPG) market is projected to reach market size of more than 1.90 Billion by 2029. The autogas sector presents a fascinating trend within the Argentinian Liquefied Petroleum Gas (LPG) market. The use of LPG for vehicle conversion is gaining traction, especially in northeastern Argentina. This can be attributed to the significantly lower price per liter compared to gasoline, alongside the readily available domestic supply. Furthermore, government initiatives like Plan Gas.Ar, which incentivizes natural gas production, have the potential to indirectly benefit the Liquefied Petroleum Gas (LPG) market by creating a larger pool of associated gas from which LPG can be extracted. Despite its advantages, the Argentinian Liquefied Petroleum Gas (LPG) market faces certain hurdles. One key challenge is the impact of global price fluctuations. While Argentina boasts domestic production, it also relies on imports to meet total demand. When international LPG prices rise, as they did recently, the cost advantage over other fuels can diminish. Additionally, government policies like export duties on LPG can impact overall market dynamics and potentially hinder growth.

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Market segmentation for the Liquefied Petroleum Gas (LPG) market in Argentina reveals distinct categories based on application and source. In terms of application, the domestic sector emerges as a frontrunner, buoyed by government subsidies and LPG's reputation as a clean and efficient cooking fuel, particularly in areas devoid of natural gas infrastructure. Its affordability and ease of use make it a staple for heating water and powering stoves across Argentine households. In agriculture, LPG plays a crucial role, especially in drying crops like grains and soybeans. Its portability and clean burning attributes make it a preferred choice in remote fields, ensuring consistent drying processes and minimizing crop spoilage risks. Moreover, some farms rely on LPG for powering irrigation pumps and greenhouses. Industrial applications for LPG abound, offering clean and efficient fuel for boilers, furnaces, and generators in diverse sectors such as food processing, textiles, and metalworking, thanks to its precise controllability ensuring consistent heat levels. Although not as prevalent, LPG finds its niche in transportation, serving as an alternative fuel for taxis and light commercial vehicles, particularly in regions lacking CNG infrastructure, with government incentives further bolstering its adoption. Refinery and chemical segments, on the other hand, play a dual role, with refineries serving as primary sources of LPG through crude oil refining, while also utilizing LPG as a fuel source for internal operations. Meanwhile, the chemical industry utilizes LPG as a feedstock for various chemical products. On the source front, refinery gas holds the majority share, being a byproduct of crude oil refining, contingent upon Argentina's crude oil processing capacity and the nature of the crude oil being processed. Associated gas, produced alongside crude oil extraction, contributes significantly to LPG production but is constrained by infrastructure limitations for capturing and processing. Non-associated gas, though currently a smaller player, holds promise with ongoing exploration and development activities, potentially shaping its future role in the Argentine Liquefied Petroleum Gas (LPG) market. Argentina's Liquefied Petroleum Gas (LPG) market is guided by a complex web of policies, regulations, and certifications that ensure safety, quality, and fair competition. The Secretaría de Energía (National Energy Secretariat) sets the overarching framework, with specific regulations issued by organismos reguladores (regulatory bodies) like ENARGAS (Ente Nacional Regulador del Gas) for transportation and distribution, and INTI (Instituto Nacional de Tecnología Industrial) for equipment and cylinder standards. Key policies include mandatory blending of LPG with natural gas for residential use, promoting LPG as a clean alternative fuel for vehicles, and price controls throughout the supply chain to ensure affordability. Obtaining certifications is crucial for market participation. ENARGAS requires licenses for importers, distributors, and retailers, while INTI certifies LPG storage tanks, cylinders, and vaporization equipment. Additionally, actors must comply with environmental regulations set by the Secretaría de Ambiente y Desarrollo Sustentable (Secretariat of Environment and Sustainable Development) for safe handling, storage, and disposal of LPG. Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029

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Kripa Shah

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Aspects covered in this report • Liquefied Petroleum Gas (LPG) market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Application • Domestic • Agriculture • Industrial • Transportation • Refinery • Chemical By Source • Refinery • Associated Gas • Non-associated Gas

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The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Liquefied Petroleum Gas (LPG) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.