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The oil and gas industry in the country is not going to come to an end," Roa said, adding funds from fossil fuels would be key to financing the transition to renewable energy.
BOGOTÁ—In a giant parking lot on the outskirts of Colombia’s capital, national oil company Ecopetrol is running an experiment.
The over 400,000-square-foot expanse is where Bogotá keeps part of its municipal bus fleet. Hundreds of those vehicles are electric and are powered up regularly with battery chargers. But one bus is fed instead by green hydrogen, a fuel created on-site. Green hydrogen is made with renewable energy and is carbon-free to burn, though using it in buses is expensive with current technology. Government funds helped Ecopetrol partner with Colombian auto parts firms to build the turquoise bus, which will soon be the first of its kind to carry passengers through the capital city.
The bus is one of at least 28 low-emission hydrogen projects under development in Colombia. For the country, whose top export in 2022 was oil, hydrogen could become a greener source of fuel—and revenue. The Colombian Mines and Energy Ministry has projected that low-emissions hydrogen exports could in future decades bring in $5 billion annually—over a quarter of the amount oil exports earned last year.
Colombia’s research and development funding for clean hydrogen is an example of industrial policy—a type of government intervention that aims to grow specific activities within the economy. Industrial policy has gained increasing global attention in recent years as China and the United States have rolled out hundreds of billions of dollars in subsidies and other government benefits for low-carbon business. Other rich countries—from those in Europe to Canada to Australia—are now scrambling to keep up. For developing nations like Colombia, the question is how to do the same when they have relatively little money available to spend up front.
The bus is one of at least 28 low-emission hydrogen projects under development in Colombia. For the country, whose top export in 2022 was oil, hydrogen could become a greener source of fuel—and revenue. The Colombian Mines and Energy Ministry has projected that low-emissions hydrogen exports could in future decades bring in $5 billion annually—over a quarter of the amount oil exports earned last year.
A key factor to the bus’s development was that “the national government is directly involved, not just with the creation of public policies but with financial support for this project,” said Yeimy Báez, a former Ecopetrol vice president then overseeing low-emissions projects, as she surveyed the lot under the blistering Andean sun in July. While the fuel for the prototype bus was created using electricity from hydropower, the premises will soon be equipped with solar panels to create hydrogen bus fuel. Baez noted that hydrogen projects had turned several former Ecopetrol oil and gas engineers into “workers of the energy transition.”
BOGOTÁ—In a giant parking lot on the outskirts of Colombia’s capital, national oil company Ecopetrol is running an experiment.
The over 400,000-square-foot expanse is where Bogotá keeps part of its municipal bus fleet. Hundreds of those vehicles are electric and are powered up regularly with battery chargers. But one bus is fed instead by green hydrogen, a fuel created on-site. Green hydrogen is made with renewable energy and is carbon-free to burn, though using it in buses is expensive with current technology. Government funds helped Ecopetrol partner with Colombian auto parts firms to build the turquoise bus, which will soon be the first of its kind to carry passengers through the capital city.
Empresas Públicas de Medellín (EPM) has outlined plans to increase spending by around 20% next year as it prioritizes its flagship Hidroituango project and decarbonization initiatives.
The multi-utility's board approved a budget of 28.8tn pesos (US$7bn) in 2024, up from 24.2tn pesos this year, of which the majority will go to its core businesses of power generation, transmission, electricity distribution, gas, water supply and wastewater.
Colombia – Andi and Naturgas launched the first hydrogen corridor with nine organizations.
The National Association of Businessmen of Colombia, Andi, and the Colombian Natural Gas Association, Naturgas , within the framework of the First Hydrogen and Energy Efficiency Congress of the country, at the Cartagena de Indias Convention Center, launched the first hydrogen corridor green in Colombia, with the saying ‘driving towards sustainability’.
Once production fully ramps up, NG Energy will be supplying about 6% of the Andean nation’s demand for natural gas. Fonseca said the company hopes it can raise that level to as much as 20% within three to five years as pipeline infrastructure is developed to get gas to market.
The company unveiled its production forecasts Thursday as Colombia looks to reverse declining gas reserves, which at an estimated 7.2 years are at their lowest since at least 2007. President Gustavo Petro has stopped awarding new oil and natural gas exploration licenses as part of a pledge to wean the nation off of its dependency on fossil fuels.
Companies are focusing their efforts on existing contracts as a result. State-owned Ecopetrol SA, the largest natural gas producer in the country, is looking to expand output off the Caribbean coast, its top executive said earlier this month.
NG Energy International Corp. expects an eight-fold boost in its natural gas production in Colombia after a new field begins production next year.
No idea but, that’s my hope.
Among other proposals, ANH has proposed that holders of licenses for unconventional oil and gas deposits may convert their contracts to allow conventional exploration in the same areas.
In addition, unconventional block holders would be free to use the acreage to develop renewable power projects or carbon capture, utilization and storage (CCUS) initiatives.
ANH says the measures will boost the chances of success for existing contract holders and allow the country to reinforce its energy security through the incorporation of new reserves.
Colombian oil and gas regulator ANH is close to publishing new rules that will ease requirements for companies with exploration and production contracts.
In a draft resolution released for public comment in May, ANH proposed a 50% extension to drilling timetables in the first phase of exploration and 100% in the second.
It also opened the possibility for operators affected by force majeure to request changes to the physical boundaries of their licenses.
“The ANH has worked in recent months to fine tune an agreement after reviewing comments from the industry," the agency’s president Clara Guatame said during an energy event in Bogotá.
Colombia currently has 12 active exploration contracts in three offshore basins off the country's northern Caribbean coast. State-run oil company Ecopetrol has stakes in all but one of the blocks, which are expected to require investments of US$280mn this year.
The areas are considered vital to Colombia's efforts to guarantee future natural gas supply amid an accelerating decline of proven reserves.
The oil and gas industry in the country is not going to come to an end," Roa said, adding funds from fossil fuels would be key to financing the transition to renewable energy.
Last December, Ecopetrol said it would invest between 25.3 trillion pesos and 29.8 trillion pesos (between $6 billion and $7.1 billion), with a focus on the transition to renewables and ensuring energy self-sufficiency.
Colombia's oil and gas industry is not coming to an end due to the transition to cleaner energy, Ecopetrol CEO Ricardo Roa said on Tuesday, i
The rate at which consumption of natural gas is growing in Colombia, coupled with declining domestic production, which will accelerate due to Petro's ban on hydrocarbon exploration, will cause imports of the fuel to accelerate. This is placing greater pressure on Bogota to significantly increase the volume of LPG cargo being received by Colombia, threatening the balance of trade and energy security. It is predicted that the once energy-self-sufficient country will become a net importer of natural gas by 2030. Even recent natural gas discoveries will do little to expand domestic supply and alleviate the threat of an energy crisis while exacerbating existing economic weakness caused by a ballooning trade deficit.
A series of recent natural gas discoveries in Colombia gave considerable hope of boosting domestic reserves and production. Among the most significant finds were the 2017 Gorgon-1 and 2022 Gorgon-2 deepwater discoveries in the COL-5 Block located offshore from Colombia's Caribbean coast. The block is operated by Shell, which holds a 50% working interest, while the remaining 50% is held by Ecopetrol. There are also the earlier 2015 Kronos and 2017 Purple Angel deepwater discoveries made near COL-5 Block. Another promising find occurred at the Uchuva-1 exploratory well, which was drilled in the offshore Tayrona Block by operator Petrobras, which holds a 44.44% working interest, with the remaining 55.56% controlled by Ecopetrol. While those discoveries demonstrate there is considerable potential in Colombia's territorial waters, in the Caribbean, it will be many years for they are developed.
“Currently, Colombia is on course to run short of domestic gas this decade.”
European supermajor Shell and state-controlled partner Ecopetrol have made a new natural gas discovery offshore Colombia.
The development of this gas province in the southern Caribbean could contribute significantly to maintaining the country’s energy security and supporting the energy transition that Ecopetrol has been developing,” said Ecopetrol.
“Currently, Colombia is on course to run short of domestic gas this decade, with a gap between gas supply, Including import capacity and demand of 560MMcfd projected for 2030”
Time Is Running Out’ on Colombia Natural Gas Market as Supply Shortfall Looms
Colombia needs to expand domestic natural gas production and/or add more LNG import capacity to avoid a potential gas supply deficit, energy experts are warning.
ANH says the measures will boost the chances of success for existing contract holders and allow the country to reinforce its energy security through the incorporation of new reserves.
"The purpose is to establish criteria that encourage exploration activity," Guatame added.
Colombian oil and gas regulator ANH is close to publishing new rules that will ease requirements for companies with exploration and production contracts.
In a draft resolution released for public comment in May, ANH proposed a 50% extension to drilling timetables in the first phase of exploration and 100% in the second.
It also opened the possibility for operators affected by force majeure to request changes to the physical boundaries of their licenses.
“The ANH has worked in recent months to fine tune an agreement after reviewing comments from the industry," the agency’s president Clara Guatame said during an energy event in Bogotá.
Among other proposals, ANH has proposed that holders of licenses for unconventional oil and gas deposits may convert their contracts to allow conventional exploration in the same areas.
In addition, unconventional block holders would be free to use the acreage to develop renewable power projects or carbon capture, utilization and storage (CCUS) initiatives.
ANH says the measures will boost the chances of success for existing contract holders and allow the country to reinforce its energy security through the incorporation of new reserves.
"The purpose is to establish criteria that encourage exploration activity," Guatame added.
According to statistics agency Dane, oil and gas accounted for more than a third of Colombia's total export revenue in 2022.
Colombia needs more natural gas imports to meet growing power demand as El Niño-influenced weather conditions have resulted in water shortages, necessitating a shift away from hydroelectricity.
International oil and gas majors, including UK-based Shell and Brazil's Petrobras, have shown interest in expanding their participation in natural gas projects offshore Colombia, Ricardo Roa, the head of Colombia's state energy firm Ecopetrol, has told Bloomberg in an interview.
Colombia's Caribbean coast has several promising offshore gas projects and recent deepwater discoveries have raised the hopes that the South American country could become a natural gas exporter.
Thanks energy. Industry news is all we have right now. wish we had an official update like everyone else here..Until then, all I can do is glean from the energy world in Colombia and beyond… glta longs still holding
In terms of cleaning up the current energy makeup, "the goal is to lower methane emissions by 45% between now and 2025 and some 55% by 2030," he said.
Ecopetrol has made an effort to incorporate natural gas as an element of the green transition by investing in technology in what Roa called an "important local bet."
"We have five or six important (renewable energy) projects that we're looking to participate in," he said, without giving details due to confidentiality agreements.
International oil majors are pushing to expand production at natural gas projects off Colombia’s Caribbean coast, Ecopetrol SA Chief Executive Officer Ricardo Roa said in an interview.
Ecopetrol has made an effort to incorporate natural gas as an element of the green transition by investing in technology in what Roa called an "important local bet."
"We have five or six important (renewable energy) projects that we're looking to participate in," he said, without giving details due to confidentiality agreements.
Colombia's state-run energy company Ecopetrol (ECO.CN) will seek to become a player in clean and renewable energy generation to meet its own demand while also promoting the South American country's energy transition, its chief executive said on Monday.
Ricardo Roa, who has led the $25 billion company for five months, said he sees opportunities for Ecopetrol in some projects that rivals have quit.
"We are seeing a window of opportunity in projects that other important players have been announcing that they will abandon for various reasons, some due to environmental restrictions, some to restrictions with the communities," Roa said, although he did not provide details of how Ecopetrol would overcome the challenges.
Colombia's first leftist president Gustavo Petro wants to move away from fossil fuels and has stopped awarding new exploration licenses for oil and gas. But Colombia has 11 existing licenses in which some international majors partner with Ecopetrol.
One such venture, a Shell- Ecopetrol collaboration, found gas last year in the Gorgon-2 well in Colombia's Caribbean deep waters. Ecopetrol and operator Shell are partners in the Col-5, Fuerte Sur, and Purple Angel blocks in the Caribe Sur area with a 50% interest each.
International oil and gas majors, including UK-based Shell and Brazil's Petrobras, have shown interest in expanding their participation in natural gas projects offshore Colombia, Ricardo Roa, the head of Colombia's state energy firm Ecopetrol, has told Bloomberg in an interview.
Colombia's Caribbean coast has several promising offshore gas projects and recent deepwater discoveries have raised the hopes that the South American country could become a natural gas exporter.
There are fears that the recent arrival of the El Niño weather phenomenon in Colombia will once again sharply impact water levels and, hence the output from the country's hydro-plants. This will force Bogota to expand electricity production by employing gas-fired powerplants to boost output, placing further pressure on already constrained natural gas supplies. Rapidly rising demand for natural gas, including stockpiling the fuel for use in thermal powerplants due to the threat posed by El Niño, saw LPG imports for the first eight months of 2023 soar.
For the reasons discussed, there are considerable supply-side pressures in Colombia when it comes to domestically produced natural gas. Consumption of the fossil fuel in Colombia is climbing at a steady pace, with demand now significantly exceeding supply. This first occurred in 2016 as a decline in water levels due to a severe drought triggered by the El Niño climate phenomenon saw the volume of hydroelectric power, which provides around 70% of Colombia’s electricity, plunge. That placed considerable pressure on Colombia’s already fragile electric grid, forcing Bogota to employ natural gas-fired power plants to bolster electricity output at a crucial time. That added to the growing supply shortage of the fossil fuel, which was resolved by ramping up LPG imports.
International oil majors are pushing to expand production at natural gas projects off Colombia’s Caribbean coast, Ecopetrol SA Chief Executive Officer Ricardo Roa said in an interview.
Companies including Petroleo Brasileiro SA and Shell Plc have expressed interest in increasing involvement in the deep-water gas fields that could eventually turn Colombia into an exporter of the fuel, he said at New York’s Bloomberg headquarters.
He added that Colombia has proven reserves of seven years, "but with some contingencies that oil could go up to 10 years and gas up to 20 years."
Investors were concerned when President Gustavo Petro came to power in August aiming to decouple the economy from fossil fuels and make way for renewable energy, which drove the local peso to a record low against the dollar in November.
Bonilla said the switch to renewable energy would be a lengthy process.
"The energy transition is going to take 15 to 20 years and we are going to continue exporting oil and coal for much longer," Bonilla told Reuters.
The minister was fresh off a meeting in New York with investors, whose main concern was assurances around fossil fuel revenues.
"The most important issue is how we closed the discussion on oil exploration and exploitation, which was to show the map of where the exploration fields are in Colombia, (and) the current contracts," added the official, who was appointed in late April as Petro's second finance minister in less
Bonilla specified that the country currently has 202 hydrocarbon exploration contracts in an area of about 17 million hectares in places where oil or gas has traditionally been found.
He added that Colombia has proven reserves of seven years, "but with some contingencies that oil could go up to 10 years and gas up to 20 years."
Ecopetrol previously reported it will invest between around $6.1 billion and $7.2 billion this year to speed the transition toward renewable energies and help Colombian maintain energy self-sufficiency, among other investments.
Reuters this week reported that resistance from Indigenous groups in desert La Guajira province has hamstrung development of more than 50 possible wind and solar projects.
Asked about potential new bidding rounds for oil and gas blocks, Camacho said awarding new blocks was no guarantee of success.