OPPORTUNITIES AND CHALLENGES TO DEVELOP UNCONVENTIONAL GAS IN SOUTH AMERICA AND HOW THIS WILL PLAY INTO THE ATLANTIC BASIN LNG MARKET

摘要

In South and Central America, natural gas currently held 22% equity in the regional energy matrix;however the natural gas market is highly regulated, while countries such as Argentina, Brazil, Chile andVenezuela, among others, have deficits in its domestic markets. A prospective study found that thedevelopment of unconventional gas sources is not only a driving force for changes in the naturalgas market in the Atlantic basin, but also it is an opportunity for the LNG industry in the shortterm.This study considers the nature of political relationship among the countries in SouthAmerica, the status of economic integration based on natural gas, the energy matrix and the baseof unconventional gas resources in this region in order to identify opportunities and challengesfor the development of this energy source. Also, the research assess changes introduced into themarket structure by other trends such as geopolitical tensions, gas glut, energy policies, pricevolatilities and the spot market. In the short-term the study envision that these markets willremain restricted, while North America is changing its supply pattern, Central America and theCaribbean will become as an emerging market of gas, and northern European market willcontinue facing an increasing gas demand, but with a moderate development of unconventionalgas resources. Under these circumstances, competition between new and traditional suppliers foraccess to these markets will be critical and the LNG industry will play a key role in order to meetgrowing natural gas needs of these markets.