
An LNG tanker sailing off the coast of Trinidad and Tobago. (Source: Shutterstock.com)
Demand for LNG imports across the Latin America and Caribbean (LAC) region is expected to continue to rise throughout the remainder of the decade, driven mainly by Brazil, according to Poten & Partners.
LNG imports across the LAC region could reach between 22 million tonnes per annum (mtpa) and 23 mtpa in 2030, compared to around 13 mtpa currently, Poten senior LNG analyst Sergio Chapa said during a May 24 webinar focused on the region.
Brazil, home to the LAC region’s largest population and stock market, will lead the region in terms of LNG imports, according to Poten’s estimates.
RELATED: Poten Execs Talk Driftwood’s Customer Problem, Permian Gas for Asia
However, Chapa said Brazil’s demand for LNG imports would remain heavily dependent on weather conditions in and more specifically its hydroelectric reservoir levels.
“This means they will sign few long-term agreements except to power LNG-to-gas projects,” Chapa said, referring to Brazil.
In Argentina, demand for LNG imports is likely to decline as the country continues to boost production from its famed Vaca Muerta shale formation and more importantly as it adds additional infrastructure to transport the gas to large domestic consuming regions.
RELATED: Permian Producers Fancy Larger Piped-gas Exports to Mexico
RELATED: Q&A: Trinidad’s Energy Minister Young Talks Gas Production, Venezuela and Atlantic LNG
However, there is a risk Argentina will change its position and necessitate more LNG imports, Chapa said.
Chilean demand for LNG is expected to fall if Argentina stays the course on developing its shale reserves since Argentine piped-gas imports will be cheaper.
Demand from other LAC region importers is expected to remain steady, Chapa added.
These LNG scenarios come amid plans across the LAC region, specifically in Argentina and Mexico, to add sizable liquefaction capacity come 2030.
Currently, only Trinidad and Tobago (which hosts Atlantic LNG) and Peru (Peru LNG) are home to dedicated liquefaction facilities.
RELATED: Argentina Goes for LNG Exporting Glory
RELATED: Q&A: Ecopetrol’s Felipe Bayón Talks About the Permian, Colombian Gas
Recommended Reading
US Emergency Oil Reserves Fall to Lowest Level in 40 Years
2023-04-17 - U.S. Strategic Petroleum Reserve feel by by nearly 1.6 MMbbl the week of April 10, Department of Energy data shows.
What's Affecting Oil Prices This Week? (April 24, 2023)
2023-04-24 - The price of Brent crude ended the week at $81.58 and the price of WTI ended the week at $77.87.
What's Affecting Oil Prices This Week? (April 17, 2023)
2023-04-17 - The price of Brent crude ended the week at $86.31 and the price of WTI ended the week at $82.52.
What's Affecting Oil Prices This Week? (March 27, 2023)
2023-03-27 - While still facing some headwinds, Brent crude prices have recovered a portion of the significant downturn that occurred last week, ending the week at $74.99 after closing the previous week at $72.97.
What's Affecting Oil Prices This Week? (April 3, 2023)
2023-04-03 - On April 2, OPEC+ announced production cuts of 1.16 MMbbl/d beginning in May, in line with last week’s assessment that it would take unexpected good news like a production cut from OPEC+ to push the price of Brent above $80 and WTI above $75.