Colombia's plan to face a natural gas deficit - Sectors

Colombia would face a gas deficit from 2027, that is, the gas produced locally and that imported through the Cartagena regasification company, Spec, would not reach to cover local needs for that year.

(Read also: Blockades in Meta and the production of hydrocarbons).

This was explained at the time by the then director of the Energy Mining Planning Unit (Upme), Christian Jaramillo, who said that this was one of the reasons that motivated the tender for the Regasificadora del Pacífico.

In this context, the El Cayao Port Society (Spec) announced that was carrying out a market study to establish the interest there is in expanding its regasification capacity. Currently this infrastructure has the capacity to regasify 400 million cubic feet per day (Mpcd) and with this it would seek to increase by 50 Mpcd to close this year and even by 2026 the capacity could be brought to 530 Mpcd.

According to Alejandro Castañeda, president of Andeg, a union of thermal generators, this would make it possible to extend the term for there to be a deficit, although this would largely arise from the magnitude by which Spec’s capacity is increased.

(Of interest: Dane reveals the products that have had the most increase between January 2022-2023).

Thermal plants and large industries have high gas consumption.

Photo:

Archive / WEATHER

However, the possibility of a deficit led Upme to take out the tender for the second time to build the Regasificadora del Pacífico. In this way, this infrastructure would increase the capacity to process liquefied natural gas (LNG) by another 400 million cubic feet per day. imported, or to meet the demand from the south of the country.

Castañeda explained that there are a series of regulatory challenges for both regasification companies.

In the case of Spec, in 2026 the regulatory terms that specify its remuneration expire.

Currently, 50% of the payment is made by the thermal plants and the other 50% is given by the restrictions of the electrical system.. For this reason they have asked the Energy and Gas Regulation Commission (Creg) to take prompt measures to resolve these difficulties and not reach the time limit to establish the mechanism again.

Now, with respect to the Regasificadora del Pacífico, this is a work that has generated a series of repairs in the industry. Some of the comments that have been made is that due to its location it would be more expensive, since it requires the construction of a gas pipeline to link the terminal with the system.

Photo:

Barrancabermeja City Hall

To this Castañeda adds that for this work the remuneration schemes that clearly specify how it will be paid have not yet been drawn up its operation.

«Although a possible payment scheme came out in the consultation, the Creg has not yet taken the necessary measures,» he explained.

All this occurs within the framework of the National Government’s announcement not to grant new oil exploration contracts. This, because according to the Minister of Mines and Energy, offshore resources and prospective and contingent resources would allow self-sufficiency even up to 2042.

Although the report on which she based herself to establish this data has been questioned, the Minister has indicated that the information presented therein is accurate. Therefore, Castañeda explained that The thermal market, which is the main buyer of gas in the country, is awaiting the report on resources and reserves consumed by the National Hydrocarbons Agency (ANH) in May.

This will make it possible to establish the even greater need to import natural gas. So far, several companies have announced the determination of gas, which could be added to current reserves, increasing the country’s self-sufficiency.

During the second semester of the year, the negotiations of contracts for the purchase of gas are carried out.

“Outside that window you can make small purchases in the secondary market. But once the Total Production of Demand (PTD) is known in May and it crosses with demand so that the contracting can be done”, pointed out the union leader.

Based on these results, as well as the progress of the expansion of the Spec and regasificadora del Pacífico construction, the thermal generation market as well as other consumers of this gas will be able to act to offset a possible deficit for the coming years.

Specification Expansion Study

At the end of January, the El Cayao Port Society (Spec) launched a market survey in order to find out the interests of the actors in expanding its regasification capacity.

According to José María Castro, manager of Spec, those players who want to develop the market and for this require greater natural gas capacity can participate in the process that will be open until February 20.