International gas investors see Latin America as the most attractive region in the worldwide gas market, according to Datamonitor plc, London.
A survey by the analyst of leading international gas players revealed that Latin America will require $100 billion in energy project financing up to 2005, of which $50 billion is expected to be spent on pipelines.
Datamonitor said that foreign companies are the leading source of investment in Latin America, and that Brazil and Argentina are the most attractive countries for investment and are expected to remain so.
The allure of Latin America was attributed to the region's rapidly growing electricity demand and the increasing liberalization of regional hydrocarbon industries.
"Independent estimates as to future energy requirements in the region," said Datamonitor, "predict that an increase of about 60% is expected to 2010, 50% of which will be needed by Brazil and Mexico, with another 25% by Argentina, Colombia, and Vene- zuela.
"The supply and replacement of traditional fuels is also taking place, as natural gas makes up an increasing proportion of power generation in the region.
"In 1997, natural gas was responsible for 11% of the region's power capacity, and (its share) is expected to rise by 2010 to 17%, with a corresponding decline in oil and hydroelectric power."
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