ENERGY ADVISOR a WEEKLY PUBLICATION of the DIALOGUE July 28, 2017

LATIN AMERICA ADVISOR ENERGY ADVISOR A WEEKLY PUBLICATION OF THE DIALOGUE www.thedialogue.org July 28, 2017

BOARD OF ADVISORS FEATURED Q&A TOP NEWS Nigel Blackaby Global Head, OIL & GAS International Arbitration Group, Freshfi elds Bruckhaus Deringer Should the Region Oilfi eld Suppliers Mary Rose Brusewitz Write Down Partner, Strasburger & Price Use Natural Gas as Millions in Jeffrey Davidow Venezuela IOUs Senior Counselor, The Cohen Group a ‘Bridge Fuel’? Venezuela was unable to make cash payments to its biggest Ramón Espinasa Consultant, oilfi eld suppliers in the second Inter-American Development Bank quarter, and service companies Luis Giusti accepted promissory notes for Senior Advisor, hundreds of millions of dollars Center for Strategic & that the companies immediately International Studies wrote down. Jonathan C. Hamilton Page 2 Partner, White & Case RENEWABLES Raul Herrera Partner, Talks to Sell Belo Corporate & Securities Practice, Arnold & Porter Monte Hydro Dam Natural gas has become an increasingly popular fuel in the Americas as more countries in James R. Jones the region look to energy independence. The Vaca Muerta shale gas formation in Argentina is Stall Over Price Chairman, among the largest shale plays in the world. // File Photo: Neuquén Province. ManattJones Global Strategies Talks to sell the country’s Belo Jorge Kamine As Latin America works to meet its Paris climate agreement Monte hydropower dam have Counsel, commitments, it must also contend with a rising demand for stalled over price issues. Skadden Arps Page 3 electricity, which is expected to nearly double by 2040. In Craig A. Kelly Q Director, order to fi ll the gaps left by the at times inconsistent nature OIL & GAS Americas Int’l Gov’t Relations, of wind power and solar power, the region has looked to natural gas as Exxon Mobil one solution. However, although it is abundant and does not emit as Former Petrobras Jeremy Martin Vice President, Energy & Sustainability, much carbon as oil or coal, it is not a zero-carbon energy source. Should CEO Arrested in Institute of the Americas natural gas be used as a “bridge fuel” as the region works to reach a ze- Corruption Probe Larry Pascal Brazilian federal police on Thurs- Chairman, ro-carbon power sector, or should efforts be focused solely on develop- Americas Practice Group, ing and improving upon renewable energy sources, energy storage and day arrested former Petrobras Haynes & Boone CEO Aldemir Bendine over suspi- energy effi ciency? What are the main barriers to more widespread use of Charles Shapiro cions that he may have received President, renewable energy in the region? What is the future of natural gas in Latin large bribes from construction World Affairs Council of Atlanta America and the Caribbean’s sources of electricity? conglomerate Odebrecht. R. Kirk Sherr Page 2 President, Clearview Strategy Group Samantha Gross, fellow at the Energy Security and Climate Mark Thurber Initiative at Brookings Institution: “The fi rst question that Partner, Andrews Kurth comes to mind when I’m asked whether natural gas is appro- Alexandra Valderrama priate for power generation is ‘compared to what?’ Natural Manager, A International Government Affairs, gas can be much better than coal in terms of greenhouse gas emissions Chevron and local air pollution. But methane, the primary component of natural Lisa Viscidi gas, is a much more potent greenhouse gas than carbon dioxide if it is Program Director, Inter-American Dialogue released into the atmosphere. The production, distribution and use of Max Yzaguirre natural gas must prevent methane releases if gas is to realize its promise President and CEO, as a lower-carbon fuel. Areas of new development, like Argentina’s Vaca The Yzaguirre Group Muerta fi eld, provide an opportunity for Latin America to get gas right. Latin America is blessed with abundant hydroelectric resources, which Bendine // File Photo: Brazilian Government. Continued on page 3

OIL & GAS SECTOR NEWS and Halliburton accepted promissory notes NEWS BRIEFS for hundreds of millions of dollars that the Former Petrobras companies immediately wrote down, according Schlumberger Sees to the companies’ second-quarter reports, 9 Percent Growth in CEO Arrested in Reuters reported Tuesday. France-based Schlumberger, headed by Paal Kibsgaard, took Latin America Revenue Corruption Probe a $510 million impairment charge on promis- Paris-based Schlumberger said July 21 that sory notes received from Venezuelan state oil stronger results from Latin America helped Brazilian federal police on Thursday arrested company PDVSA in place of $700 million in boost its second quarter earnings. The oil and former Petrobras CEO Aldemir Bendine over outstanding fees, while U.S.-based Halliburton gas industry services fi rm said Latin America suspicions that he may have received large recorded a pre-tax charge of $262 million on revenue increased 9 percent sequentially due bribes from construction conglomerate Ode- to higher reservoir characterization and drilling brecht, Reuters reported. The prosecutor-gen- activities in Mexico and Central America, as eral’s offi ce in a statement Thursday said it had well as increased unconventional land activity served three arrest warrants and had executed in Argentina. Business in Brazil and Venezuela 11 search and seizure orders as part of the remained weak, however. Ecuador revenue “Operation Car Wash” corruption probe. Legal declined, which was offset by more activity in representatives for Bendine were not immedi- Colombia. ately available for comment. According to the statement, Bendine allegedly sought 17 million reais, or approximately $5 million, in bribes Kibsgaard // File Photo: Schlumberger. Kenon Receives Off ers when he headed Banco do Brasil in exchange for authorizing the rollover of a loan to a unit promissory notes in exchange for $375 million for IC Power Business in of Odebrecht. Odebrecht refused his request, in fees. While neither company identifi ed Latin America, Caribbean however. After he took over as head of Petro- PDVSA by name in their fi nancial fi lings, both Singapore-based Kenon Holdings said on described the oil company as their “primary Sunday it had received nonbinding offers to customer” in Venezuela, and a source at Bendine allegedly received buy some or all of its IC Power businesses in PDVSA confi rmed that the company had issued some 6 million reais in Latin America and the Caribbean. The company the notes. Representatives of the companies noted “there is no assurance that such discus- bribes from Odebrecht. did not immediately respond to requests for sions will result in a sale,” however. IC Power’s comment by Reuters. Venezuela’s ongoing portfolio currently includes participation in bras in 2015, Bendine is accused of demanding political and economic crisis has caused the approximately 4,100 MW of producing assets 3 million reais in payments from Odebrecht so country to delay payments or issue govern- in Latin America, the Caribbean and Israel. The that the company “would not be damaged by ment-backed promissory notes to pay suppliers company has invested $3.1 billion in projects Petrobras” following the breaking of the Oper- for its beleaguered oil sector. Last month, since its founding in 2007, with signifi cant in- ation Car Wash corruption scandal. Odebrecht Switzerland-based Weatherford International vestments made in Peru’s generation capacity. allegedly paid Bendine 3 million reais in 2015, said it would reclassify $31 million that it had according to the prosecutor general’s offi ce. previously listed as revenue instead as interest Bendine also received another 3 million reais in payment and a reduction in accounts receiv- 2017 from Odebrecht for an unspecifi ed reason able, due to the delay in PDVSA’s payment. Enel Green Power after he left Petrobras, the statement alleged. Begins Operations Brazil Doubles Some at Brazil Wind Farm Oilfi eld Suppliers Fuels Taxes Amid The Brazil unit of Italy’s Enel, Enel Green Power Write Down Millions Brasil Participações, has begun commercial Budget Defi cit operations at its 90-megawatt wind farm in Bra- in Venezuela IOUs zil, ReNews reported Tuesday. The Cristalândia As of July 21, Brazil’s government is doubling wind farm is located in the Brumado, Rio de Venezuela was unable to make cash payments some fuel taxes in an effort to close the coun- Contas and Dom Basílio municipalities in Bahia to its biggest oilfi eld suppliers in the second try’s budget defi cit, The Wall Street Journal State. The project is expected to generate quarter, and service companies Schlumberger reported July 20, citing the country’s fi nance approximately 350 gigawatt hours of electricity per year.

COPYRIGHT © 2017, INTER-AMERICAN DIALOGUE PAGE 2 LATIN AMERICA ENERGY ADVISOR July 28, 2017 and planning ministries. The move affects the citing three sources familiar with the matter. panies reportedly involved in the negotiations, “PIS/Cofi ns” levy and will raise an additional The dam is fully functioning and is expected did not request for a request for comment by 10.4 billion reais ($3.3 billion) this year, the to reach its full capacity by 2019. At that point, Reuters. The talks began in April. The Norte ministries said. Other taxes imposed on fuels approximately 35 billion reais ($11 billion) Energia consortium, which owns the dam that will not be affected. The government also said will have been invested in the project. The is located on the Xingu River, includes Eletro- it will freeze 5.9 billion reais ($1.9 billion) in dam is expected to have 11,230 megawatts of bras, Neoenergia, Cemig and Light S.A. as well federal spending this year, Reuters reported. power, which would make it the second-larg- as mining company Vale and the Petros and Brazil in 2015 lost its investment-grade rating est hydroelectric dam in the South American Funcef pension funds. after years of missing budget targets. country after the Itaipu Dam. A consortium runs Belo Monte, and partners in the project Siemens Gamesa Halliburton Latin have decided to get past some judicial and regulatory issues before restarting the talks, to Provide 36 Wind America Results Reuters reported, citing two of the sources. A more certain outlook on those issues could Turbines to Mexico Rise 10 Percent boost the dam’s potential price. “The idea is to solve some of the problems and then start a Siemens Gamesa has agreed to a deal with Oil industry services fi rm Halliburton saw its stronger sale process,” one of the sources, who independent developer Fuerza y Energía Limpia revenues jump nearly 30 percent from a year requested anonymity because of the private de Tizimín to supply 36 wind turbines for a ago as it reported Monday a small overall profi t nature of the talks, told the wire service. wind farm under development in Mexico’s for the second quarter, the Houston Chronicle Shareholders of the consortium that runs Belo Yucatán State, Power Engineering reported reported. International revenue in the second Monte and China’s Zhejiang Electric Power Tuesday. The G114-2.1-MW turbines, planned quarter of 2017 was $2.2 billion, a 7 percent Construction Co. Ltd., which is among the com- for the Tizimín wind farm, have a total capacity increase sequentially, resulting primarily from higher drilling activity in Latin America, in- FEATURED Q&A / Continued from page 1 creased well completion and drilling services in Europe, Africa and the Commonwealth of Inde- can be an ideal partner to intermittent Natural gas generation can be effi cient, built pendent States, and increased fl uid activity in renewables like wind and solar. The water relatively quickly, and is also very fl exible in the Eastern Hemisphere. Latin America revenue stored behind a dam is a form of energy adjusting to changes in demand. New nat- in the second quarter of 2017 was $508 mil- storage that can be accessed when other ural gas generation could be designed and lion, a 10 percent increase sequentially, driven located in a way that makes the addition of by increased drilling activity in Mexico, Venezu- carbon capture and storage possible, when ela and Colombia, as well as higher stimulation Areas of new develop- technology improves and costs come down.” activity in Argentina. Adjusted income from ment, like Argentina’s continuing operations for the second quarter of Vaca Muerta fi eld, Walter Vergara, senior fellow at 2017, excluding a fair market value adjustment provide an opportunity the World Resources Institute: associated with an expected promissory note for Latin America “Latin America is fortunate to in Venezuela, was $201 million. to get gas right.” A have a very signifi cant endow- ment of renewable energy resources, sized — Samantha Gross at around 100 petawatt-hours (PWh) and RENEWABLES NEWS consisting of signifi cant potential for solar, sources of power aren’t available. A more wind, marine, geothermal and hydro. In fact, integrated electric grid across Latin America the region is host to world-class solar, wind Talks to Sell Belo could allow greater access to the balancing and marine energy fi elds. In addition, the Monte Hydro Dam benefi ts of hydro while also smoothing out technologies linked to these resources as the variance in wind and solar, since wind well as to energy storage continue to evolve Stall Over Price and sun conditions will differ across geogra- at a quick pace with major gains in effi ciency phy. Natural gas might be a good choice to and cost effectiveness. In parallel, already Talks by Brazil’s Norte Energia to sell the meet growing power demand in areas where developed hydro-power resources provide country’s Belo Monte hydropower dam have hydroelectric resources are insuffi cient to about 90 GW of storage capacity in multi an- stalled over disagreements about price and balance wind and solar in meeting demand. nual reservoirs that, if linked, could serve as regulatory issues, Reuters reported Tuesday, Continued on page 6

COPYRIGHT © 2017, INTER-AMERICAN DIALOGUE PAGE 3 LATIN AMERICA ENERGY ADVISOR July 28, 2017 of 76 megawatts. The contract also includes maintenance and operation of the turbines for fi ve years. Siemens Gamesa plans to use ADVISOR Q&A concrete braces, a new type of foundation, at the site. That type of foundation can increase the output of turbines by raising the height Will the G20 Shift Its Focus to of their hubs by as much as fi ve meters. The Latin America’s Interests? two companies previously worked together on a wind project in Uruguay, but the project in The Group of 20 leaders, includ- of a well-articulated and coherent position Mexico is their fi rst deal in that country. Sie- ing the presidents of Mexico, that it usually drags onto the G20 stage. The mens has said Mexico holds signifi cant growth Argentina and Brazil, met ‘Trump threat’ may spark an opportunity for potential. Reforms in Mexico’s electricity sector Q earlier this month in Hamburg, making such an outcome possible, insofar in 2015 include a goal of providing 35 percent Germany. The Latin American G20 member as it might allow Mexico to recalibrate of Mexico’s electricity from renewable sources countries have historically struggled to its stance on trade, fi nancial and political by 2024. put forward a common platform, analysts issues. Argentina and Brazil in turn must have noted, which has led to diffi culties prepare to expand and enrich their regional in incorporating Latin American priorities strategy within the G20. There is a clear POLITICAL NEWS into the larger agenda of the summit. How opportunity in front of us: after Germany, the well were the interests of Mexico, Argen- G20—under Argentina’s presidency—will be U.S. Sanctions 13 Top tina and Brazil represented in Hamburg? hosted in Latin America. That event should What opportunities exist for advancing fi nd our countries ready to clearly represent Venezuelan Offi cials Latin American interests at next year’s G20 our regional needs and expectations as a summit, which is to be held in Argentina? whole within the G20 agenda. The care of The U.S. Treasury on Wednesday slapped What goals should Latin American leaders natural resources and the fair commercial- sanctions against 13 top Venezuelan offi cials, seek to prioritize through the G20, and what ization of raw materials; the promotion of ahead of Sunday’s vote in the South American obstacles are most likely to stand in the human resources and quality employment; country to elect a “constituent assembly” to way of achieving those goals? investment in housing, education and health; rewrite the Constitution, The Wall Street Jour- and unrestricted respect for the right to nal reported. Among the Venezuelan offi cials Jorge Argüello, president of migrate. These policy goals and others can Fundación Embajada Abierta in be the base elements of a shared agenda. Argentina and former Argen- However, to attain such an outcome, Latin A tine ambassador to the United American G20 leaders must fi rst be able to States and to the United Nations: “By not recognize each other, sit at a table and seri- being able to defi ne a common regional ously agree on how, when and where to push agenda, the Latin American bloc (Mexico, in the G20. Otherwise, the global engine and Brazil and Argentina) has struggled to its steering committee will remain in other, incorporate Latin American priorities into non-Latin-American, hands, and we will con- the global agenda and has thus faced an tinue to take our place at the tail end of the additional historical disadvantage in G20 train of contemporary global history.” Maduro // File Photo: Venezuelan Government. debates. This year’s G20 process, and the upcoming Argentine G20 presidency in 2018, targeted are Tibisay Lucena, the head of the make for great opportunities in overcoming EDITOR’S NOTE: More commentary on country’s elections agency, and the heads of Latin America’s legacy of being overlooked this topic appeared in the Q&A in Monday’s Venezuela’s army, national guard and nation- in setting the global governance agenda. issue of the daily Latin America Advisor. al police. Elías Jaua, a top politician close Latin America must fi nally overcome the lack to President Nicolás Maduro; Erick Malpica Flores, a nephew of Venezuela’s fi rst lady; and democracy, freedom and the rule of law,” said are also now barred from conducting busi- Simon Zerpa, the fi nance chief of state oil U.S. Treasury Secretary Steven Mnuchin, the ness with them. Maduro on Wednesday night company PDVSA, are also named in the sanc- newspaper reported. The sanctions freeze the responded defi antly, awarding ceremonial tions. “The United States will not ignore the offi cials’ assets in the United States and revoke swords to offi cials targeted by the sanctions. Maduro regime’s ongoing efforts to undermine their U.S. visas. U.S. citizens and businesses “We will never kneel, and our vengeance will be

NEWS BRIEFS our victory on Sunday, July 30,” Maduro said in ECONOMIC NEWS a nationally televised broadcast. “Congratula- Peru Eyes Larger Role tions for these imperialist sanctions,” he said, Brazil’s Central for Private Sector in Reuters reported. U.S. President Donald Trump has called Maduro a “bad leader who dreams Bank Cuts Key Rate Water Management of becoming a dictator.” Trump also threatened The Peruvian government wants the private to take “strong and swift economic action” if Brazil’s central bank lowered its key borrowing sector to play a larger role in water manage- Maduro proceeds with Sunday’s vote. Maduro rate by one percentage point to 9.25 percent, ment as the government enacts reforms that has said Venezuela needs a new Constitution The Wall Street Journal reported. The central are aimed at giving more people across Peru in order to resolve the country’s political and bank has now cut the benchmark Selic rate by access to running water by 2021, Housing economic crises, while the opposition sees his one percentage point for three consecutive Minister Edmer Trujillo said Tuesday, Reuters effort to rewrite the Constitution as an effort months. The bank said further cuts to the reported. Trujillo said reaching the goal of to increase his own power. The newly elected rate would be likely. “The pace of easing will providing basic water services to millions of body would become Venezuela’s top political continue to depend on the evolution of eco- Peruvians who lack them will require some 50 institution and would have the power not only billion soles, or approximately $15 billion, in to rewrite the Constitution but also dissolve investment in water infrastructure projects. the opposition-controlled National Assembly. The pace of easing He stressed that the water utilities would In May, the United States sanctioned eight will continue to depend remain state-owned even if the private sector Venezuelan Supreme Court justices under simon the evolution of ilar sanctions after the court issued a ruling, increased its involvement in water infrastruc- economic activity...” ture projects. which it later reversed, to effectively dissolve the country’s National Assembly. More than 80 — Brazilian Central Bank percent of Venezuelans oppose Maduro’s plan Panama Opens Embassy to elect the constituent assembly, according nomic activity, the balance of risks, possible to polls, the newspaper reported. Additionally, reassessments of the extension of the cycle, in Beijing Following more than 7.5 million Venezuelans voted in and on infl ation forecasts and expectations,” Break With Taiwan an unoffi cial referendum asking whether they the bank said in a post-meeting statement. support the plan to rewrite the Constitution. Panama on Tuesday announced it opened its Some analysts believe the statement indicates The overwhelming majority of those who cast embassy in China after breaking diplomatic that the bank will reduce the Selic rate by an- ballots voted against the plan. Venezuela’s ties with long-time ally Taiwan, Reuters report- other full percentage point next month. Brazil’s opposition on Wednesday morning began a ed. The Central American country established annual infl ation dropped to 2.78 percent last two-day strike as part of a last-ditch effort to diplomatic ties with the world’s second-largest month, down from 8.93 percent year over year. stop Maduro from holding the election for the economy in June, delivering a blow to Taiwan, The bank’s target infl ation rate is 4.5 percent, constituent assembly. Government opponents which now only has 20 formal diplomatic plus or minus 1.5 percentage points. estimated that some 92 percent of businesses partners. The embassy is already function- and workers observed the strike, though it did ing, though an ambassador has not yet been not present evidence for the fi gure, Reuters Brazil to Boost installed. reported. Protests tuned violent in some areas, including Caracas, where youths clashed with Mining Royalties soldiers fi ring tear gas. In Mérida State, a U.S. Warns About man was fatally shot when troops and armed Brazil’s government plans to boost mining Possibly Tainted Alcohol civilians clashed with protesters, according royalties and also establish a new regulator to a local opposition lawmaker. More than for the industry in an effort to revitalize the at Mexican Resorts 100 people have been killed in the nearly four sector, Reuters reported Monday, citing three The U.S. State Department on Wednesday months of violent protests in Venezuela. Also sources familiar with the matter. The changes warned Americans about possibly tainted or on Wednesday, Colombia’s Avianca became will increase the stake that foreign companies substandard alcohol at resorts in Mexico, the the latest airline to announce a suspension of can have in mining projects in Brazil, according Associated Press reported. The warning fol- service to Venezuela. The carrier said it would to one of the sources. That limit is currently lowed a report in the Milwaukee Journal-Senti- suspend its twice-daily fl ights to Caracas, 40 percent. The royalty increases would go nel about dozens of Americans becoming sick citing Venezuela’s need to improve infrastruc- into effect through a temporary decree that after drinking moderate amounts alcohol at ture at airports and also adhere to international would later need lawmakers’ approval, the wire all-inclusive resorts in the country. security standards, Bloomberg News reported. service reported.

FEATURED Q&A / Continued from page 3 LATIN AMERICA ENERGY ADVISOR is published weekly by the Inter-American Dialogue Copyright © 2017 a sizable regional energy storage facility. In ple in Panama because of its geostrategic a recent analysis, the levelized cost of elec- location) as well as the current process of Erik Brand tricity of solar PV and on-shore wind sources constructing power plants for biogas in El Publisher [email protected] in the region were compared with combined Salvador and Panama that have more than cycle natural gas systems and found to be 100 megawatts in capacity. In addition, the Gene Kuleta Editor the best options for power generation. Given free market is like a large country, and Mex- [email protected] the sizable resources and the momentum on ico can fi nd an important ally in the United Nicole Wasson technology and economics, solar and wind States and Canada in buying this fuel.” Reporter, Assistant Editor are clearly the immediate options of choice; [email protected] there is no need for a transition source. On Alvaro Rios, partner-director the other hand, natural gas, while indeed at Gas Energy Latin America: plentiful, will not generate as many jobs as “Latin America and the Caribbe- renewables will. Also, just a small fraction A an have vast access to hydro, Michael Shifter, President of fugitive emissions (estimated at around 3 solar and wind resources. These sources Genaro Arriagada, Nonresident Senior Fellow percent by volume) throughout the extraction of energy, even though they are becoming Sergio Bitar, Nonresident Senior Fellow and distribution system would render natural more competitive with fossil fuels, are still Joan Caivano, Director, Special Projects gas more carbon-intensive than coal. To intermittent and of relatively small scale Michael Camilleri, Director, Peter D. Bell Rule of Law Program move forward with renewables, a number of for increased demand. Thus Latin America Kevin Casas-Zamora, Nonresident Senior Fellow barriers need to be addressed, including the and the Caribbean will rely on natural gas Ariel Fiszbein, Director, Education Program lack of regulations for distributive power, a to support their power growth. Natural gas Alejandro Ganimian, Nonresident Fellow poorly linked regional transmission grid, the combined cycle power plants are quite Peter Hakim, President Emeritus level of subsidies still being allotted to fossil effi cient and thus are preferred economically Claudio Loser, Senior Fellow fuel resources in the region and the lack of a and environmentally over more ineffi cient Nora Lustig, Nonresident Senior Fellow carbon market.” and dirtier coal or oil products that are being Margaret Myers, Director, China and replaced. Central America and the Caribbean Latin America Program Carlos Boj, professional energy are seeing multiple consolidated and study Manuel Orozco, Director, Migration markets analyst at the National projects for large and small LNG for power Remittances & Development Commission of Electric Power generation and industrial uses. Mexico Jeffrey Puryear, Senior Fellow in Guatemala: “Renewable will have abundant supplies of natural gas Tamar Solnik, Director, Finance & Administration A Lisa Viscidi, Director, Energy Program energy sources like wind and solar cannot from the United States, and increased local Denisse Yanovich, Director, Development and currently offer a steady supply of energy production and ‘combustoleo’ will disappear External Relations that would provide energy security and meet in the years to come, as growth is met with the demands of the region, while natural natural gas and renewable solar and wind. Latin America Energy Advisor is published gas-generating plants are indeed able to of- In South America, natural gas production is weekly, with the exception of some major U.S. holidays, by the Inter-American Dialogue fer that today. Among the primary obstacles expected to grow (mainly in Argentina and 1155 15th Street NW, Suite 800 is a lack of regulatory frameworks in most Brazil), and gas imports in competition with Washington, DC 20005 Phone: 202-822-9002 countries for the use of this fuel for the these indigenous natural gas resources will www.thedialogue.org generation of electricity, which must comply serve as a backup for hydropower and yearly ISSN 2163-7962 with the creation and adaptation process, advances with more solar and wind. In sum- Subscription Inquiries are welcomed at which implies a transition period. Likewise mary, natural gas growth in Latin America [email protected] and in parallel, Latin America will have to and the Caribbean for power generation will The opinions expressed by the members of the Board of incentivize, fi rst, energy effi ciency from the be strong for base and back-up supply, and Advisors and by guest commentators do not necessarily demand side and second, it will have to grad- it is a crucial long-term bridge for renewable represent those of the publisher. The analysis is the sole view of each commentator and does not necessarily ually implement the technologies that will and disruptive (i.e. storage and power grids) represent the views of their respective employers or allow for the storage of energies from clean sources.” fi rms. The information in this report has been obtained from reliable sources, but neither its accuracy and sources. The future of natural gas is viewed completeness, nor the opinions based thereon, are as very prosperous, and for this reason, we The Advisor welcomes comments on its Q&A guaranteed. If you have any questions relating to the contents of this publication, contact the editorial offi ces already see plans for the construction of section. Readers can contact editor Gene of the Inter-American Dialogue. Contents of this report storage terminals for natural gas (for exam- Kuleta at [email protected]. may not be reproduced, stored in a retrieval system, or transmitted without prior written permission from the publisher.