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

In February, Argentina's actions were remarkable. First, it launched a tender similar to the Gas Scheme for additional winter production. Second, it will also lease a second FSRU to be deployed in Bahia Blanca to secure LNG supply for the winter peak demand. And third, Argentina resumed its gas flows to Chile through GasAndes. Adverse hydrology in Chile raised power prices, but higher renewables capacity is balancing the needs of thermal power generation. On the other hand, improvements in Brazil hydrology continues, and the resolution of Belo-Monte’s hydro flow restrictions reduced gas to power requirements. Therefore, Bolivian gas imports are below 20 Mcmd, and just five cargoes arrived in Brazil in February.