LNG import projects in Central and north-west South America forge ahead

[1]

The Covid-19 pandemic may have caused disruption to world energy and the global economy, but a handful of new LNG import projects in Central and north-west South America have been forging ahead, and though at different stages of development, are set to benefit their home countries once they begin operations.

In the case of El Salvador and Nicaragua, LNG imports will introduce gas to the two Central American countries for the first time, enabling them to shift away from relying on oil for thermal power, while supporting their commitment to renewables. For Ecuador, LNG will diversify its gas supply, while helping it comply with its international agreements for the reduction of CO2 emissions. In Colombia, the government believes that a second LNG terminal – this time on the Pacific coast – is necessary in order to avoid a feared gas shortfall in South America’s second most populous country.

While Pacific locations make cost-effective supply more of a challenge, access to LNG could eventually enable the development of small-scale activities such as bunkering and trucking out of these terminals – a type of service already offered by Panama at its Caribbean-facing Colon facility.