Commodity market report
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15 Pages

The largest market in the Caribbean: Puerto Rico LNG long-term outlook 2017


The largest market in the Caribbean: Puerto Rico LNG long-term outlook 2017

Report summary

Puerto Rico is an island that lacks any indigenous gas reserves.  As a result, it is entirely dependent on LNG imports for its gas supply.  Imports commenced in July 2000 with the commissioning of the country's first LNG regas facility, Penuelas, on the southern coast.  Puerto Rico has over 5,000 MW of installed power capacity, the majority of which is oil-fired. The long-term potential market for gas relies almost entirely on the power sector. Currently, Aguirre 1&2 steam turbines (ST), Costa Sur 3&4 and Palo Seco power plants, which runs on no. 6 fuel oil, do not comply with MATS. Consequently, PREPA should convert these units to natural gas to continue its regular operations, or alternatively, retire or declare them as limited use. Due to the low reserve margin required to supply Puerto Rican electricity demand, PREPA is switching to gas at its power plants.


What's included?

This report includes 3 file(s)

  • Puerto Rico LNG long-term outlook 2017 PDF - 1.03 MB 15 Pages, 4 Tables, 7 Figures
  • markets puerto rico.xls XLS - 403.00 KB
  • Puerto Rico sumary slides.pdf PDF - 678.13 KB

Description

As global energy demand rises, the market for liquefied natural gas (LNG) continues to expand. Set to increase by 50% between 2015 and 2020, the LNG market is one of the fastest growing in the world. This spectacular growth is transforming the market, with many new companies entering the sector and changing the industry landscape.

This LNG Long Term Outlook report provides an overview of LNG in the gas market.

LNG market participants and advisers can use this report to better understand the long-term role of this market in the global LNG business.

Offering bottom-up market analysis for over 150 LNG supply assets, 28 LNG-importing countries and more than 500 LNG contracts, Wood Mackenzie is the definitive and trusted resource for the LNG industry. We use our robust database and expert industry knowledge to help you understand the dynamics of the global LNG industry and identify emerging trends and opportunities.

  • Executive summary
    • Key facts
  • Infrastructure
    • Current LNG status and access
      • There is only one regas terminal operating in Puerto Rico
      • The terminal expanded by 154 mmcfd in 2012 to serve a new power plant
    • Future LNG import terminal development
      • The failed pipelines project that aimed to connect more power plants
      • A new hope: The Aguirre GasPort LNG terminal
      • The struggle for Aguirre GasPort's implementation
      • The emerging small-scale LNG markets
  • Contracts
    • Engie's SPA covers Ecoelectrica's gas offtake until 2019
    • Gas Natural Fenosa covers Costa Sur's offtake until 2017
    • No SPA has been signed yet for Aguirre GasPort terminal
  • Trade
    • Trinidad and Tobago, the major LNG supplier
    • No pronounced seasonality of LNG demand
  • Demand
    • Short term LNG outlook
      • 2017 LNG demand increase: Costa Sur's will increase to full operation on natural gas and the start of operations of a LNG truck-loading facility.
    • Medium & long term LNG outlook and risks
      • Puerto Rico has the largest potential for LNG in the Caribbean
      • A third regas terminal is likely to be required in the north
      • The risks involved in this LNG outlook
  • Costs
    • An opportunity for US LNG exports
    • Fuel oil versus natural gas
  • Key companies
    • Gas Natural Fenosa controls the additional capacity of Penuelas
    • Engie might extend LNG supply in Puerto Rico
    • PREPA: potentially, a major LNG buyer
    • The ISO container LNG trader
  • Policy and regulation
    • Puerto Rico is regulated by US laws
    • PREPA is the only electricity distribution company in the country
    • Last year's changes in regulations

In this report there are 11 tables or charts, including:

  • Executive summary
    • Executive summary: Image 1
  • Infrastructure
    • Infrastructure map
    • LNG import terminals
  • Contracts
    • LNG SPA contracts
    • Contracted LNG supply position versus available regas capacity
  • Trade
    • Historical LNG imports
    • LNG seasonality
  • Demand
    • LNG demand outlook
    • Puerto Rico Electric Power Authority's thermal power plants
  • Costs
    • Breakeven cost stack of potential LNG supplies into market
  • Key companies
    • Key companies
  • Policy and regulation
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