Page 20 - LatAmOil Week 46

LatAmOil BRAZIL LatAmOil

The Marlim cluster was once the NOC’s largest envisions the sale of $20-30bn worth of assets
producing asset, yielding more than 500,000 between 2020 and 2024.
bpd of crude, but output levels have fallen as the The programme is designed to help the com-
fields have matured. pany boost its earnings and focus its resources
As a result, Petrobras is selling them within on new upstream projects, especially deepwater
the framework of a divestment programme that oilfields in the pre-salt region. ™

REGIONAL
Rystad: Argentina, Brazil

to face gas supply gap

LNG imports are likely to fill the supply gap that widening over the next five years. By 2025, com-
is building in Argentina and Brazil over the next bined supply will rise to 72 bcm, and the coun-
five years, as pipeline shipments of Bolivian nat- tries will need to import an additional 18 bcm to
ural gas to the two countries decline, according meet demand. LNG is the most source of new
to the Norwegian energy consultancy Rystad imports, as it is currently cheaper than other
Energy. sources – including domestic gas production.
The two countries’ combined annual gas “Even though Argentina and Brazil have
demand is set to grow to 90bn cubic metres in extensive gas resources, a lack of pipeline inter-
2025, up from an estimated 76.5 bcm in 2020, connections and low investments pose hurdles
Rystad said in a report. However, Bolivia is in meeting rising domestic demand,” said Rahul
expected to supply only 3 bcm per year of the Choudhary, upstream analyst at Rystad Energy.
total, down from the current level of about 9 “This, coupled with lower gas exports from their
bcm per year, owing to declining gas production traditional trading partner Bolivia, has trig-
and increasing domestic demand, it said. gered the need for a significant increase in LNG
The two nations will also need to make up for imports in the near future.”
a supply shortfall, as their domestic production Brazil is currently capable of taking delivery
will be insufficient, it added. of the equivalent of 15 bcm per year of gas, as it
Rystad estimates that Argentinian gas has three LNG regasification units in operation.
demand will reach 52.5 bcm in 2020, while Bra- It expects to double import capacity through
zil’s will total 24 bcm. At the same time, Brazil’s three new projects that are in the latter stages of
domestic gas supplies are likely to be 20.1 bcm development.
this year, and Argentina’s will reach 42.2 bcm. Meanwhile, Argentina has only one LNG
This means that the two countries can supply import facility, the Escobar terminal near Bue-
62.3 bcm combined, or 14.2 bcm below pro- nos Aires, which can handle the equivalent of
jected demand levels for 2020. 6 bcm per year. It is intending to boost its LNG
The consultancy anticipates that gap import capacity. ™

Argentina’s Escobar terminal is near Buenos Aires (Photo: Excelerate Energy)

P20 www. NEWSBASE .com Week 46 19•November•2020