South America to maintain ‘balanced’ natural gas market

South America will continue to see a balanced natural gas market, as demand and supply match, according to new research.

In its just released 2024 global gas report, the International Gas Union (IGU) forecasts that gas demand in South America this year will hit 155Bm3 compared with 157Bm3 and 153Bm3 in 2023 and 2022, respectively.

“In 2024, good storage levels in hydro reservoirs and a slowdown in industrial demand are expected to lead to a ~2Bcm (-1.5%) fall in overall gas demand on the continent,” the report highlights.

The study also points to Argentina’s reduced gas imports from Bolivia, as the former relies more on domestically produced gas, such as that driven by Vaca Muerta.

The latest metrics from Bolivian foreign trade institute IBCE show a steep decline of gas deliveries to Argentina.

Read Argentina authorizes 4-year gas export contracts

Source: IBCE

On the production front, IGU expects “modest” growth in South America of 2.6% this year, with a projected addition of 4Bm3.

IGU’s report, which is available in the Documents box in the top-right corner, adds that “through 2023 and to July 2024, the global gas market has seen significant relief from the historically high prices and volatility of 2022.”

“However, fragility of the gas market is still top-of-mind, as energy security concerns persist amidst still tight supply, and both prices and volatility remain elevated compared to the pre-pandemic era.”

Source: IGU report