Southern Cone gas and power strategic planning outlook

Gas production in the Southern Cone will witness substantial growth through 2040, propelled by robust production in Brazil and Argentina. With the world's second-largest unconventional gas reserves, Argentina will naturally become the regional supplier, replacing Bolivia's steep production decline and limiting LNG requirements. However, unlocking investment to overcome regional infrastructure bottlenecks will be pivotal to fully monetising indigenous gas. Driven by energy transition goals and boosted by business opportunities in the free market, wind and solar continue to dominate new capacity additions, overtaking as the primary source in all markets by 2050. However, as countries face even higher temperatures, during summer seasons, the volatility of peak demand also increases, implying in greater gas-fired generation and impacting power prices from mid-2030s onwards.