Unlocking Latin America's gas potential

As governments seek to balance energy security, economic development and decarbonisation, Latin America and the Caribbean possess a largely untapped advantage: abundant natural gas resources capable of transforming their regional prosperity while supporting a pragmatic energy evolution.

Latin America and the Caribbean stand at a defining moment in their energy history as the region possesses many of the ingredients needed to become one of the world’s most important energy growth stories: abundant natural resources, growing economies, expanding energy demand and increasing potential to play a larger role in the global energy markets. Yet, one of its greatest strategic advantages remains significantly underdeveloped, and that is natural gas.

Across Latin America and the Caribbean, vast natural gas resources remain largely untapped despite their potential to strengthen energy security, support economic growth, reduce energy poverty and contribute to emissions reductions. At a time when policymakers are seeking practical solutions to complex energy challenges, the opportunity presented by gas deserves renewed attention.

The International Gas Union (IGU), together with ARPEL and OLACDE, recently examined this opportunity in depth through our report, ‘Opportunities for the Development of Gas in Latin America and the Caribbean’ and its findings are compelling as they point to a region that possesses extraordinary potential, but which must act decisively if it is to realise the full benefits of its natural resource endowment.

The message is clear: developing the region’s natural gas resources is not simply an energy opportunity but a strategic development opportunity.

A region rich in potential

Few regions in the world can match the diversity and scale of natural gas resources found across Latin America and the Caribbean.

From Argentina’s world-class Vaca Muerta formation and Brazil’s prolific pre-salt basins to the significant reserves of Venezuela, Peru, Bolivia, and Trinidad and Tobago, alongside emerging opportunities in Guyana and Suriname, the region possesses a resource base capable of supporting domestic growth while contributing to global energy security for decades to come.

Yet despite this abundance, Latin America and the Caribbean account for only a small share of the global natural gas production. Even more concerning is the fact that that share has declined in recent years.

This gap between geological potential and actual production should concern policymakers, investors and industry leaders alike, as it reflects challenges that are not geological in nature. Rather, they stem from regulatory uncertainty, insufficient infrastructure, fragmented markets and difficulties in attracting the long-term investment needed to unlock large-scale resource development.

The consequence is that a region with immense natural gas resources has yet to fully capture the economic, social and strategic benefits these can deliver. At a time when energy security has returned to the forefront of global policy discussions, this represents an opportunity that should not be overlooked.

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World Pipelines’ Americas 2026 issue

The Americas 2026 issue of World Pipelines explores the pipeline infrastructure supporting energy security and economic growth across the region. From Latin America's natural gas potential and North America's expanding gas network, to pipeline integrity, automation and asset maintenance, this special issue examines the technologies, investment and expertise helping operators build, maintain and optimise the systems that connect supply with demand.

Read the article online at: https://www.worldpipelines.com/special-reports/19082026/unlocking-latin-americas-gas-potential/