Southern Cone gas and power short-term outlook: November

Despite below-average long-term hydrology in Brazil this month, reservoir levels remained at favorable conditions, allowing system operators to keep thermal plants off. In Argentina, on the other hand, the hydrological prospect is improving and temperatures are warming up. However, Bolivia reduced gas flows to the country to below 6 Mcmd, forcing CAMMESA to increase liquid-fuel burn in Northern provinces to sustain thermal generation in this zone. From the Bolivian perspective, this reduction of flows to Argentina will enable YPFB to supply interruptible agreements with Brazilian players. As for Chile, the country raised imports through GasAndes to 7.45 Mcmd in November. This will result in the concentration of LNG imports in Mejillones, while imports from Quintero will be required just for gas security purposes.