Southern Cone gas and power short-term outlook: April 2023

As winter approaches, the dynamics in the Southern Cone gas and power markets start changing. Higher gas demand will raise LNG dependency once again in Chile and Argentina. In Brazil, the favourable hydrology supports keeping the markets at current conditions. However, the potential El Niño in the second half of this year increases uncertainties and could change the calm scenario in the country. In this short-term outlook, we explore the following: • How hydrology will evolve in each country • The Argentina and Chile’s requirements of LNG for the next winter • The impacts of the recent decabornisation policies in Chile • The conditions for YPFB to increase its footprint in the Brazilian market