PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1457091
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1457091
The South America gas turbines market is evaluated at US$0.889 billion for the year 2022 growing at a CAGR of 4.12% reaching the market size of US$1.179 billion by the year 2029.
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.
Market Drivers
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.
In November 2021, Siemens Energy secured an order for the construction of a combined cycle power plant "UTE GNA II" in the LNG-to-power project GNA II in Brazil's Rio de Janeiro. The power plant will be the second turnkey combined cycle plant offered by Siemens prior to its successful commissioning of GNA I in the summer 2021. The total investment amounted to 1 billion euros and will feature the first application of an "HL-Class" gas turbine in Brazil, which is capable enough of producing electricity that could power up to 14 million households. Likewise, in May 2023, Mitsubishi Power Americas Inc. formed an agreement with Portocem Geracao de Energia S.A for the construction of the Portocem Thermoelectric Power Plant in Brazil. As per the agreement, Mitsubishi will provide its four "M501JAC" enhanced air-cooled gas turbines.
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