Supply & Demand

Latin American LNG taking a hit from pipeline gas

Latin America’s growing gas production will promote pipeline gas trading, which is expected to further dampen the region’s appetite for imported LNG Latin America’s growing gas production will promote pipeline gas trading, which is expected to further dampen the region’s appetite for imported LNG.
By Abhishek Kumar 22 March 2018 0 30112
Pipeline connecting Venezuela and Colombia The growing trade in pipeline gas in Latin America will remain a threat to the region’s LNG imports. (PA)

The evolution of pipeline gas trading in Latin America has been anything but smooth, which is partly why several countries in the region have favoured imported LNG. However, the tide is turning as the region’s dependence on LNG imports comes under scrutiny. And while efforts by Argentina, Brazil and Mexico to boost domestic gas production will dampen prospects for LNG purchases in Latin America, they also have potential to rejuvenate the region’s trade in pipeline gas.

LNG accounted for almost 41% of Latin America’s gas imports...