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Colombia moves to allay Pacific LNG concerns as bidding deadline nears

Bnamericas Published: Wednesday, September 22, 2021
Colombia moves to allay Pacific LNG concerns as bidding deadline nears

Colombian energy planning unit UPME has ruled out holding separate tenders for the proposed Pacific LNG import terminal and its associated pipeline. 

In a response to comments from a potential investor in the liquified natural gas project, UPME said two bidding processes would not mitigate construction risks. 

"Our ... analysis showed that the benefits are greater with a single process," it said in documents published as part of an open-ended public consultation process.

UPME added that unifying the works within one contract optimized the environmental licensing process, prevented potential conflicts between dual operators and facilitated matters such as budgets, deadlines, project scope and social obligations. 

In replies to other comments, UPME also clarified doubts related to financial guarantees, payments for the auditing contract and force majeure.

Slated for Colombia's western port of Buenaventura, the Pacific LNG project is due to be completed in late 2026 at an estimated cost of US$700mn. 

Under current plans, the LNG plant would vaporize up to 400Mf3/d (million cubic feet per day) while storing up to 170,000m3. A 120km pipeline would connect the facility to a terminal in Yumbo, on the northern outskirts of Cali. 

A competitive bidding process was relaunched in June, giving potential developers until October 21 to submit technical and economic proposals for the project.

ALSO READ: Colombia energy watch: Supply auction, LNG project audit

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