Reducing greenhouse gas (GHG) emissions from the energy sector is an important objective in the energy transition process in Latin America and the Caribbean (LAC). In this context, the participation of natural gas (NG) in the energy matrix becomes even more relevant, both for industrial, commercial or domestic uses, as well as for the generation of electrical energy. In the latter area, energy plays a fundamental role as a substitute for coal and oil-based fuels.
It is noteworthy that in the last 20 years the use of NG for electricity generation has grown significantly and steadily, thus contributing to the reduction of GHG emissions from the sector (OLADE, 2024). This growth in the share of NG is due to the substitution of other hydrocarbons and coal, as well as its selection as a fuel when an expansion of thermoelectric generation capacity is carried out.
Likewise, technological advances make it possible to reduce GHG emissions in the production and transport chain.
Our region has competitive advantages to move towards an increase in the share of gas in the energy matrix, to the detriment of other fossil fuels. Among the advantages are the availability of the resource, the infrastructures for transport via pipelines (mainly in the southern cone of the continent) and the infrastructures deployed for liquefaction and subsequent gasification of the same.
Given the important role to play as an energy transition, within the framework of a just transition that our countries are carrying out, it is that this challenge must be advanced throughout the industry’s value chain.
The industry can be divided into three sections: upstream, midstream and downstream. These sections encompass the processes from extraction to the final use of energy. And it is in that sense that this Technical Note will propose an overview of the sector, the challenges faced in moving towards the decarbonization of the industry, the possible future scenarios and their conclusions.
