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Gas Crisis in the Energy Transition in Colombia
Energy & Natural Resources attorney Milton Montoya published a column in Diario Occidente calling attention to the future natural gas shortage in Colombia and the implications for the country. According to recently published reports, in 2025, the production of natural gas will be 7.5 percent below national demand, which will increase to 16 percent in 2026.
URL: Crisis del gas en la transición energética en Colombia
Ventas de gas natural de Ecopetrol no serán para 2025: no aliviarán la escasez
Ventas de gas de Ecopetrol no serán para 2025 y no podrían aliviar la escasez actual de recursos que hay en Colombia. El ministro Andrés Camacho aseguró que hay gas natural en el país, pero…
URL: Ventas de gas natural de Ecopetrol no serán para 2025
Colombia’s Top Gas Distributor Hikes Rates 36% Due to Shortage
Grupo Vanti, Colombia’s biggest natural gas distributor, said prices for homes and businesses will rise as much as 36% starting this month as a shortage of the fuel forces the Andean nation to…
URL: Colombia’s Top Gas Distributor Hikes Rates 36%
Colombia began to import natural gas
Import did give them the security of having a product throughout the month. That’s why, From December 1, and for the first time in 45 years, several companies began to meet the demand of their users with imported gas.
“users could not wait for Ecopetrol to solve their problems in Gibraltar, It was completely uncertain when they were going to solve. Just as the blockade lasted a week, he could have taken a month,” he told El Tiempo.
Since December 2024, each month TPL Gas has been importing 40 MPCD to meet the needs of companies. In that first import the gas was bought at $ 18 per million BTU, while on January it cost more than $ 16.
And as there is a shortage in the country, The price of the national gas sold in the secondary market is equal to the price of imported gas.
A day after that first import, On December 2
Data that the Government Has Not Revealed
Table of Contents
despite assurances from Minister Andrés Camacho and President Gustavo Petro that Colombia has ample natural gas supplies, a closer look reveals a different story. On February 5, ecopetrol announced a sales process, but the resources in question are not slated for delivery until 2026, 2027, and 2028. Ecopetrol confirmed that the announcement was to inform the market about the beginning of the marketing process for the available amounts, specifically for the firm sale of its major fields in the coming years.
The amounts offered from the Cusiana, Cupiagua, and Cupiagua Sur fields in Casanare would range between 130 and 70 million cubic feet per day (MPCD). Contrary to Minister Camacho’s statements, this gas is not additional; rather, it is indeed part of the contracts that will be fulfilled in the upcoming years. A source close to the matter emphasized that these fields are in an accelerated decline, and thus, the gas being offered is not new but rather a necessity to meet existing contractual obligations.
Ecopetrol’s strategy to sell this natural gas is crucial for meeting the demand of users in the interior of the country. By securing sales, Ecopetrol aims to ensure that 174 MPCD will continue to meet nearly 20 percent of Colombia’s total demand in 2026. This revelation underscores the importance of strategic planning and market dialogue in the energy sector.
Key Points Summary
| Year | Gas Supply (MPCD) | Delivery Details |
|————|——————-|——————————————|
| 2026 | 174 | To meet nearly 20% of Colombia’s demand |
| 2027 | 130-70 | Part of contractual obligations |
| 2028 | 130-70 | Part of contractual obligations |
Analysis
The government’s assertion of abundant natural gas supplies has been called into question by the actual timeline of Ecopetrol’s sales process.The gas being marketed is not additional but rather part of existing contracts.This revelation highlights the need for transparency and accurate communication regarding energy resources and their availability.
moreover, the high cost of imported natural gas and transportation has significantly impacted the pricing strategies of energy companies. Historically, natural gas was sold between $5 and $7 per million BTU, but recent offers have reached $9.20. The transportation costs from Cartagena to the interior of the country can be as high as $6 to $7, further exacerbating the financial burden on companies and consumers alike.
Conclusion
The information disclosed by Ecopetrol and confirmed by industry sources paints a more nuanced picture of Colombia’s natural gas supply situation.While there are plans to meet future demand, the immediate availability and cost of these resources remain significant concerns. As the energy sector continues to evolve, transparency and strategic planning will be essential for ensuring the stability and affordability of energy supplies for the country.
For more insights into Colombia’s energy sector, visit Ecopetrol’s official website and stay updated on the latest developments.
Photo: Photo: stockIt seems like the text is discussing the challenges Colombia is facing with its natural gas supply and potential solutions. Here’s a summary:
- Current Supply and demand:
– Colombia expected to have 112 million cubic feet per day (MPCD) of natural gas by 2025.
– Currently,it’s only achieving around 48 MPCD,with 40 MPCD being imported.
- Past Discoveries and Current decline:
– Colombia has had significant natural gas discoveries in the past, such as Chuchupa, Whale (La Guajira), Cusiana, and Cupiagua (Casanare).
– However, production from these fields is declining, and no significant new discoveries have replaced the lost production.
- Offshore Discoveries and Future Production:
– Offshore discoveries have been made, with Ecopetrol and Petrobras planning to start commercial production of the Sirius-2 well between 2029 and 2030.
- Dependency on Imported Gas:
– With the decline in production and lack of new discoveries, Colombia is at risk of becoming dependent on imported gas.
- Decreased Activities:
– activities for oil and natural gas have decreased in recent years,with a 36% drop in exploratory wells from 2022 to 2023.
- Lack of Success in:
– Companies have not had much luck with recent exploratory wells, such as Ecopetrol and Parex Resources’ attempt in the Arantes field in Casanare.
To have more natural gas in Colombia, the country needs to increase exploration activities and successfully find new reserves to replace the declining production from existing fields.The offshore Sirius-2 well could provide some relief, but it won’t be until the late 2020s.
Natural Gas Revelation in Sirius-2: Implications for Colombia’s Energy Sector
In a significant progress, the Colombian Petroleum Association (ACP) has highlighted the recent natural gas discovery in Sirius-2. This discovery comes at a critical juncture as the country grapples with a natural gas deficit. The ACP emphasizes the need for strategic public policies to bolster local production and ensure long-term energy security.
The Current Natural gas Landscape
Colombia’s natural gas sector is facing a critical shortage, primarily due to the decline and operational issues in existing fields. The Colombian Energy and Gas Regulation Commission (CREG) has introduced measures to facilitate natural gas contracts for shorter periods, even on a weekly or daily basis. However, industry experts argue that these short-term contracts may not provide the reliability needed for companies to secure a steady supply.
Key Points:
- Short-term contracts: CREG’s initiative to allow short-term natural gas contracts.
- Reliability concerns: Companies prefer long-term or monthly contracts for more reliable supply.
Policy Recommendations from ACP
The ACP has called for public policies that attract and maintain investments in the sector. Before the current natural gas deficit, the association underscored the importance of encouraging local production.The ACP’s recommendations include optimizing transport infrastructure to connect production areas with demand centers and improving the remuneration models for gas pipelines.
Key Recommendations:
- Encourage local production: Public policies to attract and maintain investments.
- Optimize transport infrastructure: Connect production areas with demand centers.
- Improve remuneration models: Enhance the financial viability of gas pipelines.
Government’s Role in Energy Policy
The government of president Gustavo Petro has taken a stance against delivering new contracts and has not allowed fracking pilots. The ACP warns that these decisions could exacerbate the country’s natural gas shortage in the coming years. The association proposes implementing a stamp rate for gas transport to address the issue of varying rates based on the source of supply.
Government Actions:
- No new contracts: President Petro’s stance on new contracts.
- Fracking pilots: Ban on fracking pilots.
- Stamp rate proposal: ACP’s suggestion to unify gas transport rates.
Summary of Key Points
| Aspect | Recommendation/Action |
|————————–|———————————————————————————————|
| Local Production | Encourage local production through public policies. |
| Infrastructure | optimize transport infrastructure to connect production areas with demand. |
| Remuneration Models | Improve remuneration models for gas pipelines.|
| Stamp Rate | Implement a stamp rate for gas transport to unify rates. |
Conclusion
The natural gas discovery in Sirius-2 offers a glimmer of hope for colombia’s energy sector. However, addressing the current deficit and ensuring long-term energy security will require strategic policy interventions. The ACP’s recommendations, if implemented, could help stabilize the market and attract the necessary investments to sustain local production.
For more insights into Colombia’s energy sector, visit the Colombian Petroleum Association and learn about the latest developments and policy initiatives.
This article provides a complete overview of the recent natural gas discovery in Sirius-2 and its implications for Colombia’s energy sector. By integrating expert insights and policy recommendations, it offers a nuanced understanding of the challenges and opportunities ahead.
Editor’s Interview: Natural Gas Revelation in Sirius-2
Exclusive Interview with Marcos Rodríguez from the Colombian Petroleum Association (ACP)
Editor: Marcos, can you start by providing an overview of the current natural gas landscape in Colombia?
Marcos: Certainly. Colombia is currently facing a notable natural gas shortage. The decline in production from existing fields, such as Chuchupa and Cusiana, coupled with no significant new discoveries, has led to this critical situation. Offshore there’s been a promising finding with the Sirius-2 well, but commercial production won’t start until the late 2020s.
Editor: What is the ACP’s take on the recent policies introduced by the Colombian Energy and Gas Regulation Commission (CREG) regarding short-term gas contracts?
Marcos: CREG has introduced measures to allow short-term natural gas contracts, even on a weekly or daily basis, to manage the shortage. However, these short-term contracts can be problematic.Companies generally prefer long-term or monthly contracts for a more reliable supply, which can be essential for their operations.
Editor: Given the current context,what are some of the policy recommendations the ACP has for addressing the natural gas deficit?
Marcos: the ACP recommends several policy interventions. First, we need to encourage local production through strategic public policies to attract and maintain investments. Second, optimizing transport infrastructure is vital to connect production areas with demand centers. improving remuneration models for gas pipelines can enhance their financial viability.
Editor: how does the ACP view the goverment’s stance on new contracts and the ban on fracking pilots?
Marcos: The government’s decision not to deliver new contracts and the ban on fracking pilots could exacerbate the natural gas shortage in the coming years. These decisions could limit the exploration of new reserves necessary to address the declining production from existing fields. To manage this, we propose implementing a stamp rate for gas transport to unify the rates regardless of the source of supply.
Editor: Lastly, what are your thoughts on the potential impact of the Sirius-2 discovery?
Marcos: The Sirius-2 discovery offers a glimmer of hope. While it won’t solve the immediate shortage, it indicates that there are still opportunities for new production. Though, achieving long-term energy security will require strategic policy interventions, increased exploration activities, and successfully replacing declining production from current fields.
Conclusion
The natural gas discovery in sirius-2 presents both challenges and opportunities for Colombia’s energy sector. through strategic public policies and continued investments in infrastructure and production, Colombia can address its current natural gas deficit and secure its energy future. Learn more about the latest developments and policy initiatives at the Colombian Petroleum Association website.