News and AnalysIs for

Following a national debate as to whether Colombia has sufficient gas resources for the long term future, the Energy and Gas Regulation Commission (CREG) has issued resolutions clearing the path for natural gas imports starting in 2016.

Natural gas producer and distributor Madigas says it will invest COL9B (US$4.77M) throughout Colombia this year with around COL4.5B of it focused in the Caldas Department.

The total value of fuel and products derived from extraction in Colombia dropped 12% in the first quarter of 2013 to US$12.52B from US$14.23B a year ago, pushing Colombian exports as a whole to drop 7.3% in that period.

Natural gas producer Promigás has been offered up to US$100M in financing from the Interamerican Development Bank to improve its “Brilla” lending program due to its success in helping the bottom of the pyramid.

Colombia’s association of natural gas producers Naturgas has formulated three proposals that it says will make gas more competitive for industrial use. It has presented its proposal to regulatory authorities for their review.

The first quarter is strange because some stragglers take the full 90 days they have to report 4Q results and then often are able to file 1Q results early. So we did not publish our price analysis last quarter and have two quarters´ worth of data for this quarter.

Photo: MinMinas
MinMinas Federico Renjifo has a big smile as he helps an unidentified citizen of Valle de Cauca cook on her new gas stove. Maybe it is a sign that he believes more in the concept that there are over 16 years-worth of gas reserves than the concept that the country will run be in shortages by 2019. From a MinMinas press release, translated and with commentary by Hydrocarbons Colombia.

Our publication of Naturgas press releases and their criticism of statements by Santiago Urdinola, VP of Mining, Hydrocarbons and Energy at business persons’ association ANDI has sparked a reply from the ANDI. It seems the statement about potential gas shortages in 2019 were in fact based on well-informed study, in particular scenarios developed by the UPME, a MinMinas research institute on energy issues. We publish in full their letter to us and finish with our commentary.

This the longer version of the ANDIs study on gas supply. From an ANDI press release, translated and with commentary by Hydrocarbons Colombia.

Oil gets much of the attention but from a domestic politics point of view, gas is perhaps more important. The government has been pushing development of gas as a substitute for dirtier fuels and as part of an integrated strategy for electrical generation. From a MinMinas press release, translated and with commentary by Hydrocarbons Colombia.