Southern Cone gas and power short-term outlook: March

Above-average hydrology has consistently recovered reservoir levels since 2022 in Brazil. The marginal price remained at US$0/MWh for the fifth consecutive month. In Chile, on the other hand, even with increasing renewable output, Energy Transition efforts will accelerate the coal phase-out, increasing gas-fired thermal generation and, consequently, raising power prices, as seen in March (US$120). Argentina will also see a raise in gas demand during the next winter in Argentina since there are risks in Bolivia's volumes to meet the Northern provinces. The complete reversal of Gasoducto del Norte in Argentina and the start-up of Rota 3 in Brazil pressure Bolivia to increase its footprint in the Brazilian market before 2024.