South America Gas Turbines Market - Forecasts from 2022 to 2027

South American gas turbine market will grow at a CAGR of 4.19% to reach a market size of US$1089.477 million by 2027, from US$817.510 million in 2020.

Manufacturing plants are one of the main implementers of gas turbines that are used to produce power and turn mechanical drives. The aviation industry also finds its application that is vital to turn compressors. Due to increasing populations, research, and development on various fronts, there has been an uptick in manufacturing plant installation. Thus, the production capacity is projected to fuel the demand for gas turbines. Compared to other counterparts, the gas turbine operates for shorter periods and requires less water.

Increasing investments in research &. development.

Nevertheless, the current regulatory scenario is more conducive to accommodating alternative means of power generation. Further, increasing R&D and investments in environment-friendly means of power generation; the social imperative to provide power supply to the marginalized communities of the world, and the integration of pollution control technologies are further poised to boost the South American gas turbine market. For instance, the M501F4 gas turbine upgrades for the Cartagena power plant, along with an exclusive 15-year Long Term Service Agreement (LTSA), have been agreed upon by Mitsubishi Hitachi Power Systems (MHPS) and Termocandelaria S.C.A. E.S.P. (TPL), Colombia in January 2020, among others. This decision will put Termocandelaria's goals of producing electricity more affordably and reliably into action, resulting in lower carbon emissions. As part of this service package, Mitsubishi Hitachi Power Systems will also upgrade the Westinghouse gas turbines to Advanced Class Gas Turbines. Another instance is that of the generation of electricity from Brazil's pre-salt gas.

Rising number of energy projects in the region.

In January 2020, Patria Investments, Mitsubishi Hitachi Power Systems Americas (MHPS), and Shell confirmed the signing of a contract with BNDES or National Bank for Economic and Social Development, to finance the gas-powered Marlim Azul Energia power plant, in Macaeof Rio de Janeiro State. This plant is one of Brazil's first pre-salt gas-powered energy projects that is going to offer electricity at quite attractive prices for consumers. The agreement has been signed between the aforementioned entities to jointly develop the plant and trade the energy that would be generated. The plant is set to be operational in 2023. The plant is the first one in Brazil to use an MHPS M501JAC gas turbine. This JAC technology equipment has high operational flexibility, allowing the plant to supplement intermittent renewable generation.

Further, concerning Bolivia's aspiration for energy generation, underscored by its 2025 plan, and to ensure that Bolivia emerges as the export hub of natural gas, Siemens was awarded the project to facilitate and oversee the upgradation of Bolivia's three largest electric power plants. For Termoelectrica de Warnes, additional SGT-800 gas turbines would be used, among others. In Termoelectrica Entre Rios, six additional SGT-800 gas turbines are slated. Last but not least, for Termoelectrica del Surfour, additional SGT-800 gas turbines have been designated.

Thus, during the last three years, there have been quite a few contract awards from state entities to private players in the gas turbine market that clearly state that South America is poised for energy independence and has substantially contributed to the South American gas turbine market. Further, more ambitions about energy generation from the governments of various South American nations are projected to boost the growth of the gas turbine market in this region.

Key Developments

• In June 2021, Mitsubishi Power Americas, Inc., shipped an M501 JAC gas turbine to Marlim Azul Energia's power plant in Rio de Janeiro. The operations of this power plant are set to begin in January 2023, and then it will become the most fuel-efficient power plant in South America. The gas turbine in the Marlim power plant is the world's leading gas turbine with greater efficiency and lower carbon emission per unit when used claims the company.
• Siemens Energy secured the largest LNG-to-power complex (GNA II) in Brazil's Rio de Janeiro in November 2021. The company's scope predicts the entire power island delivery which consists of three high-efficiency HL class gas turbines, one steam turbine, three heat recovery steam generators, and four electric generators. Furthermore, the two GNA power plants can provide electricity for the consumption of around 14 million households.

COVID-19 Impact on South America Gas Turbines Market

The pandemic had a significant impact on the South American Gas Turbine market owing to the factory shutdowns, travel restrictions, and lockdowns to contain the spread of the virus. The consequences of the pandemic hit the South American countries adversely and Brazil was the worst-hit country in the region. The oil and mining industries faced supply chain and logistic issues. As per the IEA Oil 2021 fuel report published in March 2021, Central and South America oil demand experienced a declining trend from 2019 to 2020. The total oil demand was reduced from 6.6 mb/d in 2019 to 5.9 mb/d in of 2020. The declining oil demand and the uncertainties caused by the pandemic in the end-user- oil and gas industry led to poor market growth for the South American gas turbine market.

Segmentation:

• By Type

Gas Cycle

Combined Cycle

Cogeneration

• By Power Rating

<100 MW

>100 MV- <300 MV

>300 MW

• By Application

Power Generation

Oil & Gas

Others

• By Technology

Heavy Duty

Light Industrial

Aero-derivative

• By Country

Brazil

Argentina

Others