Promigas eyes US$400mn Jobo-Medellín pipeline project

Promigas has confirmed its interest in bidding for a contract to build and operate the US$400mn Jobo-Medellín pipeline, one of Colombia's largest energy infrastructure projects. 

The 300km line is expected to begin operating by December 2024, transporting 100Mf3/d from the Jobo gas processing facility near the Caribbean coast to Colombia's second largest city.

"Through an open [tender] process, Promigas proposes the development of a gas pipeline that interconnects the coast [with the] interior, providing reliability of supply," the Barranquilla-based company said in a quarterly presentation. 

"[This is] a strategic interconnection for the supply of natural gas from the fields of the Lower Magdalena Valley with the markets Antioquia [department] and the country's interior."

Project owner Canacol Energy launched a tender for the pipeline in October and is expected to extend the bidding process to early next year, according to Promigas.

Source: Promigas

Earlier this month, Canacol CEO Charle Gamba said the company hoped to award the contract in the first quarter 2022.

Canacol is also working on an environmental impact study, which it aims to submit to licensing authority Anla by March. The regulator would then likely take another 12 to 16 months to issue a permit, according to Gamba. 

In August, the Canadian firm signed a contract to supply gas via the future pipeline to multi-utility Empresas Públicas de Medellín (EPM) from December 1, 2024 to November 30, 2035.

Under the terms of the deal, Canacol will deliver a minimum volume of 21Mf3/d in the first year and 52Mf3/d thereafter. It also expects to sign additional off-take agreements with other large distributors in the coming months.

Promigas holds stakes in 21 companies dedicated to natural gas transport and distribution, regasification, electricity distribution and integrated services in Colombia and Peru. 

The firm posted a third-quarter net profit of 236bn pesos (US$59.8mn), up 10% on the same period last year as the easing pandemic boosted energy demand.

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