Toronto-based Pacific Rubiales (TSX: PEG) is in talks to export natural gas from its La Creciente block in northern Colombia to power companies in Jamaica and Panama, company CEO Ronald Pantin said.
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The gas would be compressed at 3,200psi (225 kilogram-force per square centimeter) and transported by barge in CNG canisters, he said at an energy conference hosted by Tristone Capital in Paris.
Technology from energy company TransCanada (NYSE: TRP) could be used in the CNG project, Pantin said.
The power companies with which Pacific Rubiales is in talks are paying US$84/b for fuel oil and US$145.50/b for diesel for generation purposes, according to the CEO.
Pacific Rubiales would sign 10-year purchase agreements with the generators, receiving an estimated US$10-12/MBTU, Pantin said.
Production from the La Creciente field is sold into Colombia's domestic market at US$4.95/MBTU.
PRODUCTION
La Creciente is producing 41Mf3/d (1.2Mm3/d) of natural gas, although wellhead capacity is 120Mf3/d.
A bottleneck in a pipeline owned by a third party is being fixed and production should rise to 60Mf3/d in August, according to Pantin.
Production will further increase to 90M-100Mf3/d by the end of the year, Pantin said, adding that total reserves on the block could rise to 1.5Tf3.
