Colombia's TGI keeps Pacific LNG project on radar

Bogotá-based Transportadora de Gas Internacional (TGI) has reiterated its interest in a US$660mn LNG project on Colombia's Pacific coast, despite uncertainty caused by the coronavirus pandemic. 

The subsidiary of Grupo Energía Bogotá (GEB) is hopeful that a bidding process for a regasification terminal and an associated pipeline will be launched this year, as planned.  

"TGI is waiting for definitive specifications of this project," chief financial officer Adriana Munevar told analysts in a quarterly earnings call on Tuesday.

Budgeted at USS$400mn, the regasification terminal is slated to process up to 400Mf3/d (11Mm3/d) and store 170,000m3 of natural gas. Colombia's first LNG import facility, in Cartagena, went into service in 2016.

The 75km pipeline – expected to cost US$260mn – would connect the terminal to Yumbo on the northern outskirts of Cali, Colombia's third largest city.

According to a resolution issued by the mines and energy ministry, which has been released for public consultation, the regasifciation plant is expected to begin operating in September 2023 and the pipeline in January 2024.

TGI also expressed interest in four projects that form part of the government's IPAT gas transport expansion program: the Mariquita-Gualanday loop, the Yumbo-Mariquita bidirectional works, the Nodo Pradera gas compressor and the Ballena-Barrancabermeja bidirectional duct. 

Munevar said the company is likely to cut its 2020 capex guidance by 25% to 35% in the coming weeks as a result of the global health crisis. 

She added that TGI does not foresee any financial risk associated with a pipeline utilization rate that has fallen below 20% in some cases.

"We don't see a worrying outlook right now but it's one of the variables that we are monitoring periodically," she added.