Southern Cone gas and power short term outlook: May 2020

Two months after lockdown measures started in Argentina, Brazil, Chile and Bolivia, historical data shows that demand reached the floor between April and May. In some cases, a modest recovery started in the last weeks. However, the willingness of authorities to start easing restrictions means we will soon face the tough reality of a contamination spike in many regions. With the winter months ahead, countries are organizing themselves to deal with a new reality in balancing natural gas supply and demand. On the one hand, Bolivia secured additional exports and will reactivate local industry. On the other hand, Argentina will need flawless LNG import operations to avoid the consumption of expensive liquid fuels, as declining local gas supply won’t be enough.