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

Upon the expected conclusion of the Nestor Kirchner pipeline filling and the start of flows from Neuquen in August through that pipeline, combined with the milder temperatures in that month, the country will significantly reduce its import (LNG and Bolivian piped gas) requirements. On the power side, good hydrology has benefited the Southern Cone countries, especially Chile, which recorded reservoir levels around 31% of capacity due to the highest rainfall recorded in the last 30 years. In this short-term outlook report, we explore the following: • The impact of hydrology on marginal prices • The outlook for the power demand and supply in the Southern Cone countries • Infrastructure developments in Argentina and its consequences in the region • The outlook of the Bolivian gas market for winter and the following months