Wood Mackenzie: Latin America’s natural gas deficit to grow
Published by Bella Weetch,
Editorial Assistant
Hydrocarbon Engineering,
With several challenges facing new gas developments in Latin America, supply will be unable to keep up with demand, driving the need for expanded imports to the region over the next decade, according to a new report from Wood Mackenzie.
According to the report 'Natural Gas Resources in Latin America', Wood Mackenzie predicts that natural gas demand in the region will increase an average of 1.4% per year over the next decade, stabilising around 25 billion ft3/d. With gas supply expected to decline at a rate of 5.6% in that timeframe, the region will face challenges.
“We forecast that supply will be unable to close the gap with increased demand,” said Adrian Lara, Principal Research Analyst, Latin America upstream oil and gas for Wood Mackenzie. “This could potentially be mitigated with new gas developments or yet-to-find resources, but there are significant challenges with infrastructure restrictions and unfavourable exploration incentives. The likely result will be a steady increase of imports in the region.”
With the region’s growing natural gas deficit, imports could range between 7 – 12 billion ft3/d by 2035 to meet demand. In 2022, net imports were 4.9 billion ft3/d and Wood Mackenzie’s 2023 forecast projects 5.2 billion ft3/d.
Countries in the mid-continent will be most challenged with gas integration, while countries such as Argentina, with its strong reserves, may find opportunities to supply neighbouring countries.
Said Lara: “Colombia’s gas production needs to offset declines of at least 300 million ft3/d by 2030 or else it will require a higher level of gas imports. Venezuela has a significant amount of undeveloped gas resources in the Mariscal Sucre offshore assets, estimated at 13.6 trillion ft3, and some of which could be jointly developed with Trinidad and Tobago. Peru also has discovered undeveloped resources in the Camisea region accounting for approximately 3.7 trillion ft3. The question remains which of these resources can become more attractive to operators, and whether the infrastructure and market restrictions can be overcome in a timely manner.”
Contingent resources are equal to 80% of remaining reserves in Latin America.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/04052023/wood-mackenzie-latin-americas-natural-gas-deficit-to-grow/
You might also like
The Hydrocarbon Engineering Podcast - Process safety improvements in the downstream sector
In this episode of the Hydrocarbon Engineering Podcast, Lara Swett, Vice President of Technical & Safety Programs, American Fuel & Petrochemical Manufacturers (AFPM), joins us to explain how the downstream sector has continued to improve its process safety record.
Tune in to the Hydrocarbon Engineering Podcast on your favourite podcast app today.
