Starts LNG sale in Colombia
Canacol Energy announced today that it has started production and sales of liquefied natural gas (“LNG”). This is the first operation of its kind in Colombia, the facilities have been installed in the area of the Well of Jobo.
Charle Gamba, president and CEO of Canacol, commented that “given the limited capacity of the pipeline infrastructure in Colombia. Industrial, commercial and residential energy users who are not located along existing pipeline routes. These customers currently consume 145 million standard cubic feet per day (MMscfpd) of compressed natural gas and propane, which is transported over long distances through trucks as a source of energy.”
Target Market 145 MMscfpd that today consume more expensive fuels.
The manager added that compressed natural gas (CNG), for example, has a higher cost of transportation. 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 goal is to build other liquefaction terminals in other strategic locations in Colombia, with the aim of replacing the use of diesel, gasoline, compressed natural gas , propane and other LNG fuels at a lower cost to consumers and lower pollutant emissions,” Gamba said.
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He detailed that this gas will be purchased by the company Surenergy which, in turn, will be dedicated to ground transport to its own customers.
Initial offer of 2.4 MPCD
At the moment, he said, Canacol estimates producing about 2.4 million cubic feet of gas per day. That production will grow as demand so.
Expected savings of 20%
The manager revealed that the expected return margin on new production of this type of gas is between 20 and 30, but that will depend on each of the customers to which 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.