Commodity Market Report

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

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08 August 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.

Table of contents

    • Key facts
    • 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
    • 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
    • Trinidad and Tobago, the major LNG supplier
    • No pronounced seasonality of LNG 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
    • An opportunity for US LNG exports
    • Fuel oil versus natural gas
    • 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
    • Puerto Rico is regulated by US laws
    • PREPA is the only electricity distribution company in the country
    • Last year's changes in regulations

Tables and charts

This report includes 11 images and tables including:

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

What's included

This report contains:

  • Document

    markets puerto rico.xls

    XLS 403.00 KB

  • Document

    Puerto Rico LNG long-term outlook 2017

    PDF 1.03 MB

  • Document

    Puerto Rico LNG long-term outlook 2017

    ZIP 1.78 MB

  • Document

    Puerto Rico sumary slides.pdf

    PDF 678.13 KB

  • Document

    Executive summary

    PDF 774.70 KB

  • Document


    PDF 131.13 KB

  • Document


    PDF 98.33 KB

  • Document


    PDF 87.19 KB

  • Document


    PDF 116.59 KB

  • Document


    PDF 83.45 KB

  • Document

    Key companies

    PDF 104.43 KB

  • Document

    Policy and regulation

    PDF 81.78 KB

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