In a context where the fight against climate change is becoming increasingly urgent, Latin America and the Caribbean (LAC) is committed to the transition to a low-carbon economy.
This is where the role of natural gas stands out as an important component in this process. As the region strives to meet global commitments and reduce climate vulnerability, energy diversification has been a priority.
Renewable energies have played a key role in this transition and natural gas, which today represents 26% of the region’s primary energy, also has a relevant role in our matrix.
Natural gas has a strategic role in electricity generation: i) to mitigate the risks associated with oil price volatility, ii) to provide rapid response capabilities and maintain system stability, and iii) to serve as backup installed capacity for hydroelectric plants facing climate change risks.
Latin American and Caribbean countries are active participants in the natural gas value chain. On the one hand, producer countries such as Trinidad and Tobago, Mexico, Argentina, Bolivia, Brazil, Peru and Venezuela currently supply around 5% of the total volume of gas consumed in the world, and on the other hand, 73% of total natural gas imports in LAC come from producer countries in the same region.
Prospects show that natural gas will continue to play an important role in the regional energy matrix. It is expected to represent around 20% by the year 2050.
It is important that countries in the region strengthen regulatory and institutional frameworks to guarantee the efficient and sustainable use of gas, and environmental issues related to the use of natural gas, especially CO2 and methane emissions, need to be addressed.
Technological alternatives must be evaluated to decarbonize this sector and OLADE plays a key role in promoting dialogue and technical cooperation to align decarbonization strategies with the opportunities offered by natural gas in the region’s energy transition.
Andrés Rebolledo Smitmans
Olade’s Executive Secretary
