BMI View: With a lack of below-ground rewards , Chile will suffer from a continued deficit of hydrocarbon supplies and a high dependence on imported energy feedstock. Chile's most immediate opportunities lie in the expansion of their LNG import facilities as a means to meet growing domestic demand . On a longer-term basis, Chile is exploring the possibility of tapping i t s unconventional resources in the Magallanes region, though we caution its development will remain challenging within a lower oil price environment.
|e/f = BMI estimate/forecast. Source: EIA, BMI|
|Crude, NGPL & other liquids prod, 000b/d||8.9||8.9||8.9||9.0||9.0||9.1||9.1|
|Refined products production, 000b/d||208.1||210.1||212.2||215.4||218.7||221.9||224.2|
|Refined products consumption & ethanol, 000b/d||349.8||358.5||369.3||380.3||391.7||405.5||419.6|
|Dry natural gas production, bcm||0.9||0.9||0.9||0.9||0.9||0.9||0.9|
|Dry natural gas consumption, bcm||4.6||4.8||4.9||5.1||5.2||5.4||5.5|
Key trends and developments in the Chilean oil & gas sector are:
In December 2015, Empresa Nacional del Petroleo (ENAP) signed an agreement with Japan's Mitsui for the development of two combined-cycle gas-fired thermal power plants, the 760MW Luz Minera and the 510MW Nueva Era plants. The projects will be built in northern and central Chile, boosting demand for LNG from the Quintero and Mejillones LNG import terminals.
The Mejilliones LNG import terminal applied for an environmental impact assessment for its USD40mn expansion project in January 2016. The project would expand liquefaction capacity from 5.0mcm/d to 10mcm/d.
In January, Chile's national oil company ENAP received environmental approval for an impact assessment for its 60-well drilling plan. This USD204mn project includes both exploration and development wells in the Magallanes region and will target unconventional natural gas deposits in the Arenal block.
On February 1, the energy ministers of Chile and Argentina announced that bilateral trade of natural gas would reverse in 2016 through underutilised midstream infrastructure. The agreement will provide Argentina with up to 5.5mcm/d of natural from May through September, marking a critical turning point in energy relations between the two countries.
Macroeconomic growth will continue as strong investment into consumer sectors over the next five years supports domestic demand for refined products. The weakened Chilean peso will support investment into these sectors and will bolster the draw for high value-added industrial manufacturing.
The Chile Oil & Gas Report has been researched at source and features BMI Research's independent forecasts for Chile including major indicators for oil, gas and LNG, covering all major indicators including reserves, production, consumption, refining capacity, prices, export volumes and values. The report includes full analysis of industry trends and prospects, national and multinational companies and changes in the regulatory environment.
BMI's Chile Oil & Gas Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and competitive intelligence on the Chilean oil and gas industry.
- Benchmark BMI's independent oil and gas industry forecasts for Chile to test consensus views - a key input for successful budgeting and strategic business planning in the Chilean oil and gas market.
- Target business opportunities and risks in the Chilean oil and gas sector through reviews of latest industry trends, regulatory changes and major deals, projects and investments in Chile.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity) and Competitive Landscape Tables.
BMI Industry View
Summary of BMI’s key forecasts and industry analysis, covering oil and gas reserves, supply, demand and refining, plus analysis of landmark company developments and key changes in the regulatory environment.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the upstream and downstream sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecast:
- Pricing: Oil price (USD/bbl, WTI, Brent, OPEC basket, Urals); oil products prices (unleaded gasoline, gasoil/diesel, jet/kerosene – USD/bbl) at global hubs.
- Production, Consumption, Capacity & Reserves: Proven oil reserves (bn barrels), production, consumption, refinery capacity and throughputs (‘000b/d); proven gas reserves (tcm), production and consumption (bcm) and fuels trade.
- Imports & Exports: Crude oil exports/imports (‘000s b/d) and value of crude oil trade in USD. Fuels exports/imports (‘000s b/d) and value of fuels trade in USD. Natural gas imports/exports (bcm), by pipeline and/or LNG, and value of natural gas trade.
BMI’s Oil & Gas Risk Reward Index
BMI’s Risk Reward Indices provide investors (independents, NOCs, IOCs, oil services companies) looking for opportunities in the region with a clear country-comparative assessment of the upstream and downstream market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
A profile of the upstream and downstream sectors, including analysis of reserves, output, consumption and trade of energy products; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments.
Comparative company analyses by USD sales, % share of total sales, number of employees, year established, ownership structure, oil production (‘000b/d), gas production (bcm), downstream capacity (‘000b/d) and % market share.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
Regional perspective on size and value of the industry. Plus comparative rankings by production, refining, imports and exports of oil, gas and LNG.
Global Oil Market & Oil Products Outlook
Based on our country coverage of over 99% of global oil and gas production and consumption, BMI provides demand, supply and price forecasts to end-2024 for oil, gas and oil products.
The Oil & gas Reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.