Enagás forecasts strong LatAm gas demand growth through 2020

Enagás expects natural gas demand in Peru, Chile and Mexico to grow by compound annual rates of 5.4%, 3.3% and 3.1%, respectively, during 2017-20.

By comparison, global demand is expected to rise at a rate of 1.7%, the Spanish energy company said in a 2016 earnings presentation.

Enagás cited "solid market fundamentals" in Peru, supporting the country's strategy of promoting consumption of natural gas on a massive scale.

"Chile," the company said, "is consolidating as one of the most dynamic LNG import market [sic] for the production of electricity, reducing costs and facilitating the integration of renewable energies."

Enagás has committed to invest 280mn euros (US$296mn) from 2017-20 in a project to expand regasification and storage capacity at the Quintero LNG terminal in central Chile.

The project entails expanding regasification capacity to 20Mm3/d from 15Mm3/d, and the construction of a third LNG tank with storage capacity of 150,000M3.

The company holds a 60.4% stake in the Quintero facility (pictured), where it expects to bring the new tank on stream by 2021.