Ecopetrol, Frontera advance Colombia LNG plans

Ecopetrol and Frontera Energy are on track to begin operating a new LNG import terminal on Colombia's Caribbean coast later this year amid broader efforts to boost domestic gas supply, executives said.

Slated for Puerto Bahia in Cartagena, the facility would initially regasify 126 million cubic feet per day (Mf³/d), with capacity rising to 370Mf³/d by 2028.

Ecopetrol acting CEO Juan Carlos Hurtado said the project timetable hinges on regulatory approvals from national licensing authority ANLA and infrastructure agency ANI.

"The idea is for ANI to finalize the minor amendment we need by the end of this month," Hurtado told reporters.

The project will benefit from existing infrastructure at the port, with overall investment earmarked at US$80mn.

Officials estimate the terminal will meet up to 40% of Colombia's gas demand at full capacity.

Hurtado said a bidding process for offtake volumes drew interest from 44 companies, three of which secured contracts.

The announcement comes as Colombia seeks to avert a looming natural gas deficit amid dwindling production and projections of rising demand from thermoelectric power generators.

According to a December report published by Bancolombia, Colombia's dependence on imported natural gas is set to surpass half of total supply by 2029.

Frontera CEO Orlando Cabrales said supply concerns have been exacerbated by the Middle East crisis, which has prompted a sharp rise in oil and gas prices.

"It [the conflict] shows the importance of having energy infrastructure," Cabrales said. "It does not appear that the conflict will end soon, but international investors have shown strong appetite for this type of infrastructure."

(The original version of this content was written in English)