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LNG in Colombia, Canacol Energy starts sale

Starts lNG sale in Colombia

Canacol Energy announced today that it has commenced production and sales of natural gas liquefied natural gas liquefied natural gas (“LNG”). This is the first operation of its kind in Colombia, the facilities have been installed in the Jobo well area.

Charle Gamba, president and CEO of Canacol, commented that “given the limited capacity of the gas pipeline infrastructure in Colombia. The users of the industrial, commercial and residential industrial, commercial and residential that are not located along existing pipeline routes. These customers currently consume 145 million standard cubic feet per day (MMscfpd) of natural gas. compressed natural gas and propane compressed natural gas and propane, which is transported long distances via trucks as a source of energy.”

Target Market 145 MMscfpd that today consume more expensive fuels.

He added that compressed natural gas (CNG), for example, has a higher transportation cost. CNG is three times greater than LNG, resulting in significant savings potential for consumers switching to LNG.

“With our joint venture partners, Galileo, providing the technology, our strategic objectives is to build other liquefaction terminals in other strategic locations in the region. ColombiaThe objective is to replace the use of diesel and gasoline, natural gas compressed, propane and others fuels with LNG at a lower cost to consumers and lower pollutant emissions,” said Gamba.

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He explained that this natural gas will be purchased by the company Surenergy, which, in turn, will be dedicated to land transportation to its own customers.

Initial offer of 2.4 MPCD

At the moment, he said, Canacol estimates to produce about 2.4 million cubic feet of natural gas per day. That production will grow as demand so.

Expected savings of 20%

The executive revealed to him that the expected return margin on new production of this type of gas is between 20% and 30%, but this will depend on each of the customers to whom it is sold.

Lutz said the company is planning to build a medium-sized plant to process that gas located in the El Crucero area in the Middle Magdalena.

This plant would cost between US$11 million and US$13 million that would be contributed by Canacol directly.

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