LatAm and the Caribbean's LNG Imports

Regional LNG imports into Latin America (LatAm) and the Caribbean peaked at almost 21 million tonnes (Mt) in 2014 after which it plunged to around 14-15 Mt per annum between 2016 and 2019 (Figure 1). In 2020, LNG imports declined further to a low of 12 Mt but rebounded sharply to almost 18 Mt in 2021. The weaker LNG imports in the region between 2015 and 2019 were attributed to several factors, particularly in Argentina, Brazil and Mexico. In 2020, the further decrease in LNG imports came mainly from Mexico. Further ahead, Brazil drove the surge in the region’s LNG imports in 2021. Despite the decline in LNG imports in the region since 2015, a few countries in the region have joined the club of LNG importers including Barbados, Colombia, Jamaica and Panama. Barbados started LNG imports in ISO containers in 2016. 

In Argentina, increasing domestic natural gas production and marginal growth in consumption contributed to the overall decline in LNG imports into the country during the period 2015 to 2019. In the last two years, lower domestic gas production resulted in an increase in LNG imports. Meanwhile, Brazil’s LNG imports hit a record high in 2014, due to drought conditions, which affected hydro output for electricity generation. Hydro is the major source of electricity generation in Brazil but low reservoir levels in 2014 drove the higher demand for LNG to compensate for the lower output from hydro. After 2015, reservoir levels returned to normal levels and LNG imports fell sharply. Fast-forward to 2021, Brazil recorded one of the worst droughts in nearly a century and boosted LNG demand to an all-time high to offset the lower hydro output for electricity generation. 

Furthermore, the commissioning of new gas pipelines from the U.S. to Mexico has significantly eroded LNG imports in the country over the past few years. Mexico’s LNG imports fell from a high of 6 Mt in 2014 to less than 1 Mt in 2021. On the other hand, LNG imports in the Dominican Republic have more than doubled during the last decade. This was supported by the conversion of oil-fired electricity plants to run on gas. 

_{Figure 1: Trend in LNG imports in LatAm and the Caribbean}

_{Source: GECF Secretariat based on data from Refinitiv Eikon}

_{Figure 2: Gas supply sources in LNG importing countries in LatAm and the Caribbean and the share of LNG imports}

_{Source: GECF Secretariat based on data from Cedigaz Online Database}

_{Table 1: Existing LNG regasification terminals and those under development in LatAm and the Caribbean}

_{Source: GECF Secretariat based on data from Argus, Refinitiv Eikon and Project Information}

_{Figure 3: LNG regasification capacity and capacity utilisation in 2020 by country in LatAm and the Caribbean}

Source: GECF Secretariat based on data from ICIS LNG Edge