Southern Cone gas and power markets short-term outlook April 2021

April was a challenging month for the region. While in Argentina strikes across Neuquén region reduced natural gas production growth, low hydrology required additional thermal dispatch in all countries. As the hydro inflow prospects for the next six months persist below average, the natural gas balance will tighten, especially during the winter due to the fight between gas-fired dispatch and heating-related gas consumption. April was also busy on the administrative side. The Bolivian government announced a US$ 789 million investment plan in the hydrocarbon sector. According to the plan, YPFB will allocate US$ 260 million for exploration and US$ 145 million for production, much needed to increase Bolivian gas reserves.