LatAm floating terminals raise global LNG outlook

New floating regasifcation terminals in Brazil, Colombia and Uruguay are set to drive regional LNG growth amid tepid demand in key Asian markets, according to consultancy Wood Mackenzie.

In its annual report on the LNG market published on Thursday, Wood Mackenzie said global production had risen by 5Mt to 246Mt in 2014 with overall trade boosted by higher re-exports.

But gains were tempered by stagnant activity in Asia as spot prices crashed by more than half to under US$10/Mbtu.

"Demand in emerging markets, like China, failed to grow to the extent anticipated and demand in the established South Korean market fell considerably," Wood Mackenzie said.

According to the report, the Asia downturn has been countered by rising new ship orders and a "boom" in floating regasification projects.

Latin American demand for LNG has been triggered by higher thermopower generation as drought reduces the reliability of hydroelectric plants.

Floating LNG projects highlighted in the report included Petrobras' Bahia plant (pictured) in northeastern Brazil, which opened last January with a processing capacity of 14Mm3/d.

Wood Mackenzie also cited Colombia's 8.5Mm3/d Cartagena terminal, due online in December, and Uruguay's 10Mm3/d GNL del Plata facility, slated to begin operating midyear.