South America: Increase in LNG Imports

South America imports LNG in large quantities. South America imports LNG in large quantities. Argentina and Brazil are the main importers.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

South America imports natural gas (LNG) in large quantities, led by Argentina and Brazil.
Quantities not reached since 2018.

South America, a new player in the LNG market

According to data provided by S&P Global Platts, South American imports reached nearly 84 billion cubic feet (Bcf) in June 2021.
This is the highest rate since 2018 and an import of 78 Bcf.
According to experts, imports in 2021 should reach nearly 263 Bcf.

Brazil, the continent’s No. 1 LNG importer

Of the record imports in June 2021, Brazil accounted for almost half of all orders.
A severe drought hit the country during the year, causing hydraulic reservoir levels to drop.
As a result, the country had to import larger volumes of LNG.
Due to the drop in hydroelectric production, Brazil has had to turn to new sources of energy production.
As a result, the government is turning to gas-fired power plants, increasing its need for LNG.
State-owned Petrobras was therefore tasked with significantly increasing its LNG orders.
These orders coincided with the rise in world LNG prices.
The majority of Brazil’s LNG imports come from the United States.
The recent rise in LNG prices has not spared the US market, but this does not seem to have dampened Brazil’s appetite.

Argentina’s growing need for LNG in the face of an unprecedented situation

The other South American leader in LNG imports is Argentina.
Their increase in LNG orders is explained by the fact that domestic production is declining.
In addition, imports from Bolivia have become insufficient to meet winter demand.
The global pandemic brought with it various complications that hampered gas production in the south of the country.
The country has therefore taken steps to ensure LNG imports over the winter.
It has restarted a floating storage and regasification unit in Bahia Blanca.
For 2021, Argentina has launched several calls for tenders.
As a result, deliveries have doubled to 25 Bcf per month.
This represents the highest month for imports since August 2018.
Prices for these tenders are likely to be influenced by the recent rise in LNG prices.
These increases reflect strong Asian and South American demand, as well as increasing price competition in Europe.
This should reduce the overall production costs of V.E. South America is therefore facing a growing need for LNG.
In a highly competitive sector, Argentina and Brazil will have to play hardball to obtain the best prices in the short term.
In the long term, other, more sustainable solutions will have to be considered.

Rising terminal capacity and sustained global demand, notably from China and Europe, are driving U.S. ethane exports despite new regulatory uncertainties.
The United States has called on Japan to stop importing Russian gas, amid rising tensions over conflicting economic interests between allies in response to the indirect financing of the war in Ukraine.
Australian group Santos lowers its annual production forecast after an unplanned shutdown at the Barossa project and delayed recovery in the Cooper Basin.
VoltaGrid partners with Oracle to deploy modular gas-powered infrastructure designed to stabilise energy use in artificial intelligence data centres while creating hundreds of jobs in Texas.
GTT, Bloom Energy and Ponant Explorations Group launch a joint project to integrate LNG-powered fuel cells and a CO₂ capture system on a cruise ship scheduled for 2030.
Storengy has launched its 2025/2026 campaign to sell gas storage capacity over four years, targeting the commercialisation of nearly 100 TWh by 2030, with over 27 TWh available starting in 2026-27.
The US government has withdrawn its proposal to suspend liquefied natural gas export licences for failure to comply with maritime requirements, while maintaining a phased implementation schedule.
Soaring electricity demand in Batam, driven by new data centres, leads INNIO and MPower Daya Energia to secure 80 MW and launch a five-year maintenance programme.
Tamboran has completed a three-well drilling campaign in the Beetaloo Sub-basin, with 12,000 metres of horizontal sections prepared for stimulation and maintenance ahead of the commercial phase.
Valeura Energy partners with Transatlantic Petroleum to restart gas exploration in the Thrace basin, with testing and drilling planned this quarter in deep formations.
Calpine Corporation has finalised a public funding agreement to accelerate the construction of a peaking power plant in Freestone County, strengthening Texas’s grid response capacity during peak demand periods.
Naftogaz urges the European Union to use Ukraine’s gas storage capacity as part of a strategic reserve system, while calling for the end of storage filling obligations after 2027.
Spanish gas infrastructure operator Enagás is in advanced talks to acquire the 32% stake held by Singapore’s sovereign wealth fund GIC in Terega, valued at around €600mn ($633mn), according to sources familiar with the matter.
BP has awarded Valaris a $140mn drilling contract for a Mediterranean offshore campaign aimed at reinforcing Egypt’s declining gas output since 2021.
Egypt’s petroleum ministry will launch 480 exploration wells by 2030 with investments exceeding $5.7bn, aiming to revive production and reduce reliance on imports.
Faced with declining domestic consumption, Japanese liquefied natural gas (LNG) importers are ramping up commercial optimisation strategies and favouring shorter contracts to protect profitability.
European inventories curbed price declines as liquefied natural gas (LNG) supply expands and demand stays weak. Cargo arbitrage favours Europe, but winter will determine the equilibrium level. —
Sonatrach and Midad Energy North Africa signed a production-sharing hydrocarbon contract in the Illizi South perimeter, involving a total investment estimated at $5.4bn for exploration and exploitation of the site.
Kuwait Petroleum Corporation annonce une découverte majeure dans la zone offshore avec le champ de Jazah, soutenant les efforts publics d’investissement dans les infrastructures énergétiques nationales.
Rockpoint Gas Storage finalised its initial public offering in Canada with an upsized offer of 32 million shares for gross proceeds of C$704mn ($512mn), marking a new step in Brookfield’s partial divestment strategy.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.