Ecopetrol plans US$435mn refinery investments this year

Colombian state-run oil company Ecopetrol has outlined plans to invest US$435mn in refineries this year as it seeks to maintain higher crude throughput while sharpening its focus on decarbonization.

The proposed outlay represents a 4% increase on last year's investment of US$420mn in Colombia's Barrancabermeja and Cartagena refineries. 

"Around 50 or 60% of [2024 refinery investments] will be allocated to planned maintenance and that is extremely important because it leverages operational availability," Ecopetrol's refinery head Walter Canova said during the Arpel-Naturgas Week conference in Cartagena. 

"From an investment point of view, we are very steady. The government has been honoring the debt of the [fuel price] stabilization fund, so it gives us the cash to continue supporting the business, and in particular, in the case of the refineries, maintain the investment plans that we have."

The comments came as Ecopetrol announced a 17% increase in fuel production to 420,000b/d in 2023.

Refinery runs at Barrancabermeja reached 240,000b/d in the last three months of 2023, its highest quarterly figure in 16 years, while average full-year throughput at Cartagena was 198,000b/d. 

The company explained that the increase reflected higher operational availability and improved efficiency.

Meanwhile, Canova revealed the company had completed work on a 23MW solar project at the Cartagena refinery following an investment of US$20mn. 

"This week we're going to formally inaugurate the solar park at the Cartagena refinery," Canova said. "That is a huge milestone. It's the first time that we have managed to generate energy for our refineries from solar power."

He added the project formed part of a wider strategy to reduce refinery emissions by 25% before 2040 and reach carbon neutrality by 2050.