Government authorities inaugurated Colombia’s first regasification plant, El Cayao, in Cartagena, which is designed to be the backup for Colombia’s natural gas supply.
Members of both the senate and chamber of representatives are calling for answers from Ecopetrol (NYSE:EC) on supply issues experienced across the country, and on an imminent cut of subsidies for the service which will affect low income users.
Canacol (TSX:CNE) announced significant increases in its contracted sales starting in December 2017 and December 2018, facilitated by new infrastructure.
The Minister of Mines and Energy German Arce told his home department of Valle de Cauca that the government is clearing the path for a Pacific regasification plant in Buenaventura, but also could be creating a future conflict by insisting it would “be like having a Cusiana field” in the area.
The Gazprom Group arrived last year in Colombia and by 2017 hopes to increase its presence in the country, expanding to eight cities.
Canacol Energy (TSX:CNE) has announced a new agreement with gas distributor Promigas to expand its existing gas distribution network and add 100mmcfd to its current agreement.
Even though Colombia has natural gas reserves which are set to last for another six years, if no new discoveries are made then imports to cover national demand would have to start in 2018 due to problems in the distribution and transportation of gas.
GasColombia’s natural gas production in September 2016 grew 1% compared to August, to reach 992.1B BTU, with a 26.6% increase coming from the Cupiagua field, according to a study.
The number of vehicles converted to natural gas continues to grow, albeit at a slower and still slowing rate. Does supply uncertainty play a role?
The Colombian association for the propane industry, Gasnova, has been working on formalizing the market, but warns that there are groups using regulations and gray areas to take advantage of the market, and that there is a growing mafia of informal distributors in major urban centers.
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