LNG Imports to South America Down Sharply on Replenished Hydropower; Pipeline Flows to Mexico Hold Steady

Imports of liquefied natural gas (LNG) in South America are down sharply this year amid market volatility and a resurgence of hydropower in Brazil, while pipeline gas imports to Mexico have held relatively firm.

Kpler analyst Ryhana Rasidi told NGI that around 2.6 million tons (Mt) of LNG has landed in South America this year as of the end of May. That’s 0.99 Mt lower than volumes seen last year in the same period. Last year, Brazil imported record volumes of LNG during a drought that peaked around the early summer.

Analysts from Goldman Sachs Commodities Research estimated that LNG demand from South America this year could fall 5.3 million metric tons/year (mmty) compared with last year. Demand could fall an additional 0.9 mmty in 2023, according to their...