Colombia needs US$6bn/year to boost gas reserves

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Monday, November 28, 2016

The addition of natural gas reserves in Colombia in a base scenario will require some US$6bn in investment annually over the next 18 years.

That's according to an updated version of mining and energy planning unit UPME's provisional natural gas supply plan.

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The investment would add about 6.04Tf3 from probable and possible reserves and non-conventional and yet-to-find (YTF) resources. Proven reserves stand at about 5.73Tf3.

Reserves in the base scenario would come from offshore, coal bed methane and shale gas.

Gas reserve incorporation scenarios for Colombia (CREDIT: UPME)

The plan, however, highlights the impact of the current unfavorable operating environment on incorporating new reserves in the immediate future, and points to the need to look at viable solutions, such as a second LNG import terminal, to cover possible supply shortfalls.

ALSO READ Colombia prepares to receive 1st LNG cargo

The outlook adds: "The liberalization of the market in Mexico, as well as the resurgence of Argentina with non-conventional deposits represent a threat to increased opportunities for investment in Colombia."

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Natural gas demand forecast for Colombia by sector (CREDIT: UPME)