Latin American LNG imports this 12 months have dropped to six.7 million tonnes, down virtually 38 per cent from a 12 months in the past, with the area slashing provides from the United States by 30 per cent to 2.9 million tonnes, Refinitiv knowledge confirmed.
No Latin American nation made the highest 10 locations for U.S. LNG in 2020. In earlier years, nations from the area have been amongst high importers of U.S. cargoes.
“A robust drop in LNG imports into South America this 12 months is brought on by the coronavirus and excessive hydro manufacturing which have lowered demand in energy and transport sectors,” mentioned Ieda Gomes, senior visiting analysis fellow on the Oxford Institute for Power Research.
Regardless of the drop, america has remained the largest LNG provider to Latin America, adopted by Trinidad, which has exported 2.16 million tonnes this 12 months, a 40 per cent drop year-on-year.
A extreme fuel glut in Asia and Europe paved the best way for cargoes to go to Latin America as sellers look to keep away from inflicting additional oversupply in key fuel markets.
After Argentina obtained no cargoes from Qatar final 12 months, six cargoes have gone to the South American nation and 4 extra are on the best way, based on Refinitiv.
There was a small uptick in deliveries from Equatorial Guinea and Indonesia as effectively, the information confirmed.
“From January to Might 2020, the ushas persistently provided Latin America with at the very least 70 per cent of their month-to-month LNG necessities,” Rebecca Chia, analyst with knowledge intelligence agency Kpler, mentioned.
“This determine dropped to solely 36 per cent in June, the place various sources of LNG have been seen streaming in from Equatorial Guinea, Qatar, Australia, Indonesia, and even a reload cargo from France.”