Oil & gas pipelines in LatAm: What's the prognosis?

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Friday, October 2, 2015

Security issues, depressed oil prices and uncertainty regarding future supplies have all hindered major oil pipeline projects currently underway in Colombia.

The Bicentenario, Olecar and Oleuducto del Pacifico projects have all been affected, according to BNamericas' latest Intelligence Series report on oil and gas pipelines in Latin America.

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The regional outlook for natural gas pipelines is brighter - particularly in Mexico, which plans to reduce oil consumption for power generation 90% by 2018 by replacing oil-fired power stations with combined-cycle gas turbine plants.

Gas supplies will largely come from the US, facilitated by 20,000km of new pipeline projects slated for completion within the next three years.

As Peru continues to ramp up production from the Camisea gas field, it will diversify dispatch from the area via the Loop Costa and Gasoducto Sur Peruano pipeline projects, which are both underway.

Peru's Oleoducto Nor Peruano oil pipeline, like the country's oil sector in general, faces a much more difficult scenario due to low crude prices, falling production and logistical hurdles in the Amazon region, where the most lucrative oil plays are located.

For details on these and other pipeline projects in the region, including Argentina's GNEA northeast gas pipeline, download the full report.