A new report from Wood Mackenzie said countries in Latin America will need to expand imports of natural gas over the next decade. In the report, “Natural Gas Resources in Latin America,” WoodMac forecasts gas demand in the region to grow at an average rate of 1.4 percent per year over the next decade and stabilize at about 25 bcfd. Natural gas supply is expected to decline at a rate of 5.6 percent over the same period.
Adrian Lara, principal research analyst, said, “We forecast that supply will be unable to close the gap with increased demand.” Lara said the region faces serious challenges with infrastructure restrictions and unfavorable exploration incentives. “The likely result will be a steady increase of imports in the region,” he added.
Imports could range from 7 bcfd to 12 bcfd by 2035 to meet demand. In 2022 net imports were 4.9 bcfd, and Oil & Gas Journal said forecast for 2023 is 5.2 bcfd.