LNG imports to Latin America are under substantial pressure as demand for the fuel from key regional consumers drops.
Latin American consumers imported just 940 MMcm of gas as LNG last month, much lower than the 2.2 bcm imported in February 2015. Brazil’s reliance on LNG has fallen as a result of weakening gas demand and increasing domestic production. Meanwhile, Mexico has increased its pipeline imports from the US, displacing the need for LNG. Argentina’s demand for cargoes is also dropping as a result of subsidy reforms and rising domestic production. GGA expects Latin America will import 12.1 bcm of gas as LNG in H1 2016, a fall of 13.3% on an annual basis.