Gas demand in Argentina and Brazil will continue to face headwinds in 2017 as the weather remains unsupportive and macroeconomics weaken.
Weather-related gas demand in Argentina and Brazil is expected to remain downbeat for the rest of the summer, pressuring gas consumption even further. The drought in northern and northeastern Brazil that supported the country’s LNG imports last summer is long over. There is a 45% chance of above-average rainfall in those regions this summer, which would support hydropower generation and dampen gas-to-power demand. Meanwhile, temperatures and rainfall in Argentina are expected to remain near average, limiting the country’s gas consumption.