LPG, energy ally

By Pedro Cascales, President of CEGLA

Liquified Petroleum Gas (LPG) is used by 42% of Argentine households, equivalent to around 20 million people. It is the most consumed fuel in the country after natural gas, and it is present throughout the country: from La Quiaca to Antarctica, including many coastal provinces where there are no natural gas networks.
At an international level, LPG is the most widely used alternative fuel, with more than 3 billion users. Its popularity is due to its easy distribution, low environmental impact, high calorific value and speed of installation and commissioning, thanks to safe and easy-to-install containers and tanks. In Argentina, LPG production is largely in surplus, with significant exportable surpluses and competitive prices compared to other energy sources.

LPG is mainly a mixture of propane and butane in varying proportions. These hydrocarbons are obtained from:

• The separation of gases in oil and gas fields.
• The distillation process of petroleum in refineries.
• Certain petrochemical processes.
• Butane is mainly used in bottles, while propane predominates in cylinders and bulk tanks.

Main characteristics of LPG:

• Clean and non-polluting combustion
• High calorific value
• Non-perishable product
• Easy transport and transfer
• Safe storage as a liquid at moderate pressures.

LPG is a low-emission fuel that releases carbon or particles and does not spill when used. Its use helps maintain air quality and does not increase greenhouse gases (GHG). Its carbon footprint is 20% lower than that of diesel and 50% lower than that of coal. Therefore, its transition as a clean energy source has an immediate and positive impact on the fight against global warming.

Deregulation of the sector

The national government, through Decree 415/2025, amended Law 26,020, which regulates LPG activity. This change definitely eliminates state intervention in price setting at all staqes of the chain, maintaining the protection of each fractionator’s brands, ensuring the safety and maintenance of containers as well as focusing the Energy Secretariat’s action on safety issues.
In addition, the timeframes and requirements for new players to enter the sector were simplified and the import and export of LPG was liberalized. This measure sends a clear signal to the companies: the State will no longer set prices, thus avoiding investment crises such as those seen in the past.
A key point is the maintenance of 20 million bottles and cylinders in optimal conditions with reclassification every 10 years at most. This commitment involves annual investments of around 45 million dollars, in addition to improvements in bottling, storage and transport plants. The protection of the brand on each container ensures that the investments made by the fractionators are not misused by third parties.
It should be noted that the deregulation of prices did not lead to increases in the value of the cylinder; on the contrary, today it is below the levels of a year ago (adjusted for inflation), thanks to internal competition and competition from other alternative energies.

Future of LPG in Argentina

The outlook for the sector is very favourable. Increased production in Vaca Muerta will bring about large volumes of butane and propane and it is estimated that in a few years Argentina will double its LPG production. This will allow for increased exports and expanded use in the domestic market.
Currently, 70% of LPG is sold in bottles and cylinders, and 30% in bulk tanks for residential, commercial and industrial use. However, there are new uses already legislated that have strong growth potential, following the trend in other countries:

• Automotive: for cars, trucks, and buses with high autonomy and low tank weight
• Nautical: for recreational and commercial vessels.
• Power generation
• Agricultural control: weed burning without pesticides or herbicides.
• Irrigation and pumping: engines for rural use.
• Industrial applications: cost reduction compared to liquid fuels and reduction of carbon footprint.
• The immediate challenge is to update and consolidate technical regulations to preserve the high safety standards historically achieved by the industry.

With solid foundations and the contribution of private investment, the sector will be able to continue growing.
In this context, the 39th Congress of the Ibero-American LPG Association will be held in Buenos Aires from 24 to 26 March 2026, providing a strategic opportunity to discuss and analyse the future of the industry in Argentina and the region.

Pedro Cascales

With a degree in Business Administration from the Pontifical Catholic University of Argentina and more than three decades of experience, he has developed a distinguished career in consulting and business leadership within the industrial sector and business trade associations. His expertise includes foreign trade, market strategies, acquisitions, and the development of small and medium-sized enterprises across industries such as gas, energy, industrial machinery, and railway equipment. He has also served as a consultant for a variety of institutions.
He currently serves as President and Chief Executive Officer of the Argentine Chamber of Liquefied Gas Companies (CEGLA), as well as President of Tradefin S.A. Within the Argentine Chamber of Machine Tools and Production Technologies (CARMAHE), he has held multiple leadership positions—including President and Vice President—and currently serves as Secretary General.
He earned his Bachelor’s Degree in Business Administration in 1986 from the Pontifical Catholic University of Argentina. In 2019, he completed a postgraduate program at the same institution, specializing in Speech, Image, and Institutional Communication.