Rethinking the Role of Natural Gas to Accelerate Decarbonization in Latin America and the Caribbean

In Latin America and the Caribbean (LAC), for example, stranded economies and the role of national oil companies (NOCs) are of great concern. The energy transition has introduced existential questions over the future of these firms and their governments. Moreover, most, if not all, LAC markets will confront the issue of affordability.

But the LAC region also boasts a relatively low carbon footprint and abundant natural gas resources. These resources offer an opportunity to propel the energy transition forward and accelerate the LAC region’s decarbonization while addressing some of the other concerns.

Natural gas is more immediately available to serve as a cleaner transitional fossil fuel that balances the need to decarbonize with efficient resource utilization and manageable investments. And it plays a key role for cleaner industry development across LAC nations in the short and medium term.

This paper explores the role of natural gas in accelerating the region’s transition to a Net Zero economy, with a focus on key National Oil Companies (NOCs) and their pivotal role in driving decarbonization efforts. As some of Latin America’s most powerful organizations—inside and outside of the energy sector—NOCs have the resources, political connections, and the obligation to make changes.