Demand for natural gas and therefore liquefied natural gas from Chile's power industry collapsed in November following a sharp increase in the availability of cheap hydroelectricity after a wet winter and spring, energy ministry data show.
Gas-fired power plants in Chile produced 232.82 GWh of electricity in November, a fall of 59% compared with 574.14 GWh in the previous month of October.
On central Chile's SIC grid, where hydroelectric plants account for around half of the installed capacity, gas plants produced just 42.5 GWh, down 81% from 220.5GWh in October and representing just 1% of electricity generated.
Meanwhile, hydroelectric generation rose 18% to 2,932 GWh or 69% of total generation.
In arid northern Chile, gas-fired plants generated 190.32 GWh, down 46% from October.
The composition of the fuel for Chile's power generation historically varies through the year, with hydropower gaining market share after the reservoirs are replenished in the winter.
In May, hydropower produced 32% of the electricity on the SIC, compared with 29% from gas and 26% from coal.
Chile imports about 99% of the gas it consumes as LNG, mostly from Trinidad and Tobago and Equatorial Guinea.
