Latin America and the Caribbean gas long-term outlook H1 2020 highlights

Latin America and the Caribbean have been hit harder than many other regions by coronavirus. The pandemic is affecting Latin America at a time of economic weakness and macroeconomic vulnerability. The mix of external and domestic factors could pose challenges for the development of the gas industry in the region. Gas-to-power consumption will be mostly affected by the rapid increase of renewables projects auctioned in the past five years and the destruction of electricity demand by the pandemic. This is especially critical for Brazil, as pre-salt oil projects will need to manage demand for their associated gas production. Argentina's domestic gas production declined in 2020, due to the new administration's gas price controls, which results in lower gas exports to Chile and higher gas imports from Bolivia.