At a glance: Natural gas demand in Latin America

Latin America's annual natural gas consumption is forecast to hit 275Bm³ (billion cubic meters) by 2050 from around 150Bm³ in 2023, driven by the power sector.

The projection is part of the Gas Exporting Countries Forum's (GECF) latest global gas outlook, which sees the region's annual offtake of the hydrocarbon growing at 2%.

The growth reflects "growing efforts to harness domestic gas resources, expand infrastructure, and implement policies that encourage natural gas use across the power generation, industrial, and transport sectors," according to the industry group, which also highlights the role of LNG imports.

Power generation is expected to represent nearly half of the region's incremental gas offtake growth.

A BNamericas Data Insights brief reports that companies have submitted over 130 utility-scale gas-fired power projects to authorities, with combined investment topping US$20bn.

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Source: GECF

Gas output in Latin America is forecast to grow by 87Bm³, with the share of offshore production expected to increase to 43% from 37% in 2023.

In recent days, Colombia's hydrocarbons regulator ANH announced successful initial test results of the Sirius offshore prospect.

"The prospectivity reported by Petrobras and Ecopetrol in 2024, of approximately 2.3 times proven reserves, suggests that the country has sufficient gas for energy sovereignty," the watchdog said.

In addition, licensing rounds for offshore acreage are underway in Brazil and Trinidad and Tobago.

BNamericas' Project Profiles include around 700 offshore upstream developments in the early stage and in execution.

On the trade front, GECF projects the region to become a net gas importer from being a marginal net exporter, as "LNG is expected to play a dominant role in shaping the natural gas trade across Latin America."

Source: GECF

Challenges exist, however, such as limited pipeline interconnectivity which curbs regional gas integration, adds GECF.

The 260-page global gas outlook is available in the Documents box in the top right corner of the screen.