Improving oil and NGL prices are helping gas production in Peru – a trend expected to continue in Q1 2017.
Peruvian gas output comes either from oilfields as associated gas or from the country’s condensate acreage. Consequently, Peru’s gas output remains susceptible to oil and NGL prices, with recent rises in these prices being positive for the country’s gas production. GGA estimates Peru’s total gas output rose by 8.8% on an annual basis in 2016, to 13.6 bcm. Output is expected to see a year-on-year rise of 3.4% in Q1 2017, to 3 bcm, which will also support higher LNG exports from the country.