The decline in Trinidad and Tobago’s liquefied natural gas (LNG) exports over the past few years, on the back of falling natural gas production, has seen big declines in the volume of exports to Argentina and Brazil. Volumes destined for Trinidad and Tobago’s other major markets, such as Chile, USA, Central America and the Caribbean have remained relatively robust.
Back in 2012 and 2013, Argentina was the major destination for Trinidad and Tobago’s LNG, as Argentina struggled with falling domestic natural gas production and rising demand. Prior to 2007, Argentina had been a net exporter of natural gas, but, as in Trinidad and Tobago, under-investment in new upstream developments led to falling production and the need to import natural gas. These imports came in the form of both LNG and gas via pipeline from Bolivia.
Since 2013, Argentina has begun to turn this situation around and has shown some modest growth in domestic gas production and increased imports from Bolivia via pipeline, with corresponding significant declines in LNG imports, especially from Trinidad and Tobago.
LNG exports from Trinidad and Tobago to Brazil have also declined significantly since 2014 when Brazil was importing large volumes of natural gas for gas-powered electricity generation to offset declines in hydro-powered electricity caused by drought and falling reservoir levels.