Pacific Rubiales (TSX:PRE) and Belgian sea shipping logistics firm have signed an agreement to move forward with a natural gas liquefaction barge that could develop new markets for PRE and Colombia’s gas business.
While authorities say all is well, some industry players say that the increase in demand for natural gas –some 57.2% between 2009-2014- is already creating shortfalls in supply that could lead to rationing.
The number of natural gas vehicles (NGV) has reached half a million according to government figures, and fuel service giant Terpel says its distribution network is now sufficient to continue growing the market.
Most of the debate surrounding fracking and unconventional production has centered on the extraction of crude, but the Colombian Association of Natural Gas (Naturgas) Eduardo Pizano says its just as important for the future of the gas industry as well.
The outgoing director of the Energy and Gas Regulation Commission (CREG) Carlos Fernando Eraso says that the new regulatory framework in place for the natural gas industry means that companies have no impediment to investment in the sector.
Ecopetrol (NYSE:EC) is considering building an additional regasification plant in order to protect against supply deficits that could affect the country starting in 2018.
GasIndustry and government projections for Colombia’s gas reserves oscillate between worried and optimistic, with supplies lasting for 6 or 14 years, depending on the source.
Delays in renovating the regulation of rates to transport natural gas has meant US$600M in investments have been delayed while the industry awaited more details over the course of the last five years, says the president of natural gas producer Promigas Antonio Celia Martínez.
As part of its plan expand the gas transportation infrastructure available in Colombia, gas distributor TGI, recently acquired by the Energia de Bogota Group, will expand the capacity of its Cusiana-Vasconia pipeline by 20 million cubic feet.
Canacol Energy (TSX:CNE) says that the first of three gas exploration wells, Palmer 1, has tested 14.4mmcpd, or 2,732boed, of dry gas.
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