(Bloomberg) -- The two largest South American economies are set to lose most of natural gas imports from Bolivia by 2025 as the supplier faces declining production and increasing domestic demand, according to a Rystad Energy report.
While Brazil and Argentina combined will need to import an extra 18 bcm of natural gas by 2025 to meet demand, imports from Bolivia are seen shrinking by two thirds from current levels to 3 bcm
That will leave the two nations with a 15 bcm supply gap, likely to be met with LNG imports
“Even though Argentina and Brazil have extensive gas resources, a lack of pipeline interconnections and low investments pose hurdles in meeting rising domestic demand”, says Rystad analyst Rahul Choudhary.
Sees need for a “significant increase in LNG imports in the near future.”
“Domestic production will be insufficient”
Combined demand from Brazil and Argentina set to increase to 90 bcm in 2025 from an estimated 76.5 bcm this year
Combined domestic output seen rising to 72 bcm from 62.3 bcm