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Renewables take time to develop and therefore cannot immediately start meeting the country’s electricity demands. To lower emissions in the meantime, the country can turn to natural gas as a transition energy source, says Tomás González, CREE’s director and a former minister of Mines and Energy. Emissions per unit of energy from natural gas are 40% lower compared to coal, which Colombia is using to power some energy plants, and also emits up to 20% less than oil, which is ubiquitous in the transport sector. According to González, Colombia’s energy transition strategy should include a gas production increase of 50% by 2040, and then shrink to around half of what it is today by 2050, when new renewables can take on a larger generating capacity.
Backing up those words with proof that he can spearhead a successful energy transition could catapult him into a prominent environmental leadership position that Latin America desperately needs. From such a position, Petro could also take advantage of Colombia’s status as the United States’ closest ally in the region to attract investment for the energy transition and for efforts to protect the Amazon rainforest. The energy transition was Petro’s biggest opportunity to outshine his regional counterparts on a global stage.
Meanwhile, Petro keeps trying to sell his country as the promised land for renewables. In mid-June, Colombia’s president was in Germany promoting the country’s green hydrogen potential.
Renewables take time to develop and therefore cannot immediately start meeting the country’s electricity demands. To lower emissions in the meantime, the country can turn to natural gas as a transition energy source, says Tomás González, CREE’s director and a former minister of Mines and Energy. Emissions per unit of energy from natural gas are 40% lower compared to coal, which Colombia is using to power some energy plants, and also emits up to 20% less than oil, which is ubiquitous in the transport sector. According to González, Colombia’s energy transition strategy should include a gas production increase of 50% by 2040, and then shrink to around half of what it is today by 2050, when new renewables can take on a larger generating capacity.
Like most developing countries, Colombia faces the difficult task of cutting emissions while simultaneously bringing about development. If it maintains its current growth trajectory, Colombia’s GDP is projected to triple by 2050. Yet to become a net-zero emitter by that same year, the country can increase its final energy demand by only 30%, according to estimates by the Regional Center for Energy Studies (CREE), an independent energy-policy think tank. This means the electricity sector will need to undergo a remarkable transformation in efficiency, striving to increase its low emissions generating capacity fivefold.
Yes, seems to be on the roadmap for many places. Jmho glta
NEW YORK, June 20 (Reuters) - Colombia will continue to extract fossil fuels for "much longer" until it has other exports to replace that revenue, while considering diversifying its financing with carbon credits and green bonds, Finance Minister Ricardo Bonilla said on Tuesday.
Colombia could use its natural gas pipeline network to transport hydrogen to the country's major consumer markets.
But further studies must be carried out to determine the optimal blend of hydrogen with natural gas for existing infrastructure, Mónica Gasca, the head of national industry association Hidrógeno Colombia, told BNamericas.
"It is viable, however, it’s necessary to define what percentage of mixture can go through the pipe,
Happy 4th and god bless America. Still holding out hope here, good luck to all..
Good find, EB
Colombia's trade, industry and tourism minister, Germán Umaña Mendoza, said the partnership would pave the way for new business models based on agribusiness development and biofertilizers.
"Since the beginning of this government we have been proposing the need to rethink the sustainable development policy model [through] a re-industrialization of our economy," he said.
The agreement formed part of an official Colombian visit to Germany's capital, which included a meeting between the Andean country's President Gustavo Petro and German Chancellor Olaf Scholz. Petro stated earlier in the week that green hydrogen would be at the top of the diplomatic agenda.
The Colombian government and German research institute Fraunhofer Society have signed a cooperation agreement aimed at turning the South American country into a major green hydrogen export hub.
Officials signed an MOU in Berlin on Friday that seeks to assess hydrogen production and transport chains for fuel cells and fertilizers.
"The Caribbean region of Colombia can become an important industrial area for hydrogen and deliver significant volumes to local and international markets at competitive prices," Colombia's presidential office said in a statement.
It added that the government had identified Cartagena as the potential center for large-scale green hydrogen development because of its world-class port, high solar irradiation levels and strong wind speeds.
Happy Father’s Day indeed, life is good. still keeping the faith here, good luck longs.
Agree, wave of the future for energy and a need for natural gas as a source for hydrogen from what I’ve read. All my opinion, good luck longs!
Colombian lawmakers approved in the committee stage a bill that aims to kickstart investment in the fledgling clean hydrogen industry.
The so-called hydrogen economy bill seeks to establish incentives across the sector's entire value chain, including derived products such as fertilizer feedstock.
"An important opportunity has opened up for the country to move towards the energy transition and position itself as a great supplier of hydrogen worldwide," said Conservative party member Nicolás Barguil after a lower house committee concluded the bill's first debate.
The proposed legislation has received support from the Colombian hydrogen association, natural gas industry group Naturgas, business association Andi and renewable energy guild Ser Colombia, among other groups, he added.
The mines and energy ministry unveiled its long-term blueprint for clean hydrogen in 2021, outlining plans for up to 3GW of electrolysis capacity by 2030 and envisaging wide-scale adoption of fuel-cell vehicles.
Mines and Energy Minister Irene Velez pointed to 2022's improved recovery factor - a rate that measures how much oil can be extracted from a well - which increased to 23%, from 21% in 2021.
"We will continue working with the hydrocarbons sector so offshore projects materialize," said Velez, as quoted in the ANH statement.
In March, the chief executive of state-controlled oil company Ecopetrol, Felipe Bayon, told Reuters that promising offshore developments could help Colombia avoid the need for Venezuelan gas imports and possibly even lead to exports by the end of the decade.
While Colombia's oil industry remains an important source of revenue, leftist President Gustavo Petro has pledged to shift away from fossil fuels, including oil and coal, to more green energy.
The government is expected to decide soon on new exploration contracts, needed to add new discoveries to replace aging fields.
Exploration efforts must continue and be strengthened through the signing of new E&P [exploration and production] contracts that allow extending the period of self-sufficiency of hydrocarbons, guaranteeing energy sovereignty and ... the transition towards a sustainable, balanced energy mix, according to the needs of the country," Acipet said in a statement.
Acipet said the potential size of the resource would only be known following the execution of an evaluation plan and testing.
Earlier, president Gustavo Petro said the discovery proved Colombia no longer needed to sign new exploration contracts.
Since assuming office last August, Petro has kept a promise to stop issuing E&P licenses as part of broader efforts to accelerate the clean energy transition.
"The increase in reserves does not depend on the signing of new exploration contracts, which would work in the long term," Petro tweeted. "What works in the next decade is the efficient [progress] of existing exploration contracts," he added.
Colombian petroleum engineers' association Acipet has reiterated calls for new oil and gas licensing rounds to guarantee the South American country's long-term energy security.
The latest official hydrocarbon reserves, published last week, show self-sufficiency of 7.5 years for oil and 7.2 years for gas, down from 7.6 and 8.0 years a year earlier.
"Exploration efforts must continue and be strengthened through the signing of new E&P [exploration and production] contracts that allow extending the period of self-sufficiency of hydrocarbons, guaranteeing energy sovereignty and ... the transition towards a sustainable, balanced energy mix, according to the needs of the country," Acipet said in a statement.
Petro’s administration has so far refused to issue new oil-exploration licenses, though the ministries of energy, finance and industry in March said the new reserves report would be key in determining policy going forth.
In a statement following the report, Mines and Energy Minister Irene Velez said the government will continue to focus on looking for greater efficiency, and ensure that offshore projects come to fruition.
This report will again bring to light the debate on whether new contracts are needed,” said Cristancho. “For now the government may insist there are sufficient contracts but depending on how the current exploration campaign goes, it may be open to new contracts down the road.”
Colombia's latest oil and gas reserves report shows the country must issue new exploration licenses to guarantee its long-term energy security, according to natural gas association Naturgas.
The report, published on Thursday by national hydrocarbons agency ANH, said proven oil reserves stood at 2.074Bb (billion barrels) on December 31, up 35Mb or 1% compared to end-2021. The figure for natural gas dipped slightly to 2.82Tf3 (trillion cubic feet).
The volumes reflect self-sufficiency of 7.5 years for oil and 7.2 years for gas, down from 7.6 and 8.0 years, respectively, a year earlier. The faster rate of decline is due to higher production rates reported in 2022.
"We currently have reserves that allow us to be self-sufficient for up to eight years, but the truth is that companies identify other types of reserves or reserve potential that, if developed only through the drilling of wells, can add self-sufficiency in the long term," Naturgas president Luz Stella Murgas (pictured) told newspaper La República.
Officials had previously said the reserves report would dictate whether Colombia needed to resume auctions for oil and gas drilling rights.
The government has yet to comment on whether it could reverse a decision to stop issuing new licenses.
"Independent of the reserves report, Colombia should maintain natural gas self-sufficiency and the only way is by drilling wells, accelerating exploration in contracts that are already signed with the ANH and also in areas that have not been offered, but that have been identified with reserve potential," Murgas said.
Murgas said the need for more home-grown gas is becoming more urgent amid forecasts of an imminent El Niño drought cycle.
An imminent Colombian government tally of the nation’s oil reserves is expected to show a decline, putting pressure on President Gustavo Petro to reconsider his ban on new fossil-fuel contracts.
A National Hydrocarbons Agency report scheduled for release later this month is expected to show the reserves shrank last year from the previous assessment of 7.6 years and 8 years, respectively, of crude and natural gas output, analysts said.
Since Gustavo Petro became president of Colombia last summer, hopes around the future of the country's renewable energy sector have risen. Petro has repeatedly stated that he wants to move away from oil and gas to focus on Colombia's vast green resources, promoting investment in the renewable energy sector. But can fossil-fuel-reliant Colombia really move away from coal, oil, and gas in favor of renewable alternatives that much more quickly than other countries?
Several major fossil fuel operations across Colombia were forced to close in 2020 due to the global pandemic. At that moment, Colombia was not ready for its fossil fuel operations to come to a halt, with few other opportunities available for workers to turn to. Nevertheless, the pandemic experience provided an opportunity for change in a country that had previously relied heavily on coal, oil, and gas production.
Colombian President Gustavo Petro promised to stop issuing new licenses for oil and gas drilling rights ahead of his presidential election victory last June.
But officials have since said that a final decision on the policy would not be made until new hydrocarbon reserve figures are published in May.
Chief Executive Officer Ricardo Roa told investors that he hoped more oil contracts and bidding rounds for exploration blocks would be forthcoming.
“That’s what gives an oil company long-term stability,” Roa said Wednesday, on a call following the announcement of first-quarter earnings. “In order to increase reserves, it is necessary to have areas to explore for oil and gas.”
Interesting read, seems like they will continue to need fossil fuels in the short term to continue the long energy transition. Bodes well for natural gas. Thanks EB
During the WEF in Davos, Irene Vélez-Torres, Colombia’s Minister of Mines and Energy, said: “We decided that we are not going to award new gas and oil exploration contracts […] as part of our commitment to the fight against climate change because we know that this decision, which is planetary, is absolutely urgent. We reviewed existing contracts and it was determined that they would guarantee the national gas supply until beyond the year 2037 and there may even be surplus resources.”
The government’s plan is to “strengthen existing contracts and unlock the suspended ones”, while beginning a “progressive and gradual” energy transition to more renewables and the democratisation of power generation.
This plan is based on a report released last December entitled Balance of hydrocarbon contracts and resources available for the Just Energy Transition, which caused controversy due to the following statement: “It is possible to infer that the contingent resources, both from the Sinú 9 block and from the offshore discoveries, can supply the national demand and, even, produce a surplus in its production until the year 2037. If we take into account the prospective resources this supply can be extended to the year 2042.” In other words, Colombia does not need new oil and gas fields.
Colombia hopes to reduce its emissions by 51% by 2030 and the development of green hydrogen is “central to that discussion,” said Katharina Grosso, who until October this year was executive director of the Non-Conventional Energy and Efficient Energy Management Fund (FENOGE), a Colombian government agency. Last year, the country passed its Energy Transition Law, which also highlights hydrogen, and has since seen the election of Gustavo Petro as its president, who has promised to wean the country off fossil fuels, and may provide further impetus to green initiatives.
Petrobras is working on a fast-track plan to bring an offshore natural gas discovery in Colombia's Tayrona block into production by 2026, and the Brazilian company's exploration team think that there is more gas to be found there.
Petrobras holds a 45% stake in Tayrona, partnered by Colombia's own state-controlled company Ecopetrol
Three years ago, the state-controlled company was all but ready to relinquish the whole block after frustrating results on the last two wells, but success with the Uchuva dry gas discovery last year has completely changed things.
Thanks EB, important to celebrate the moms out there.
Recently, the ministry of mines and energy has delegated some functions to the National Hydrocarbons Agency, that will allow us to grow our knowledge mainly in wind energy, geothermal energy and hydrogen," Guatame said at an oil and gas conference organized by the Colombian Petroleum Association (ACP).
The ANH will invest 640 billion pesos ($135.8 million) in projects over the next four years geared toward the energy transition, she said.
BARRANQUILLA, May 3 (Reuters) - Colombia's National Hydrocarbons Agency (ANH) will invest more than $135 million in growing its knowledge of renewable energy options, the agency's new president Clara Guatame said at an industry event in the Caribbean city of Barranquilla on Wednesday.
The government of leftist President Gustavo Petro has set its sights on weaning Colombia from its dependence on oil exports, a major source of income for the Andean country, as it moves to transition to cleaner energy sources.
Opportunity and potential still exist, we ain’t dead yet.
Good find, EB
Thanks, EB. Opportunity and potential still exist.
Colombia wants to speed up discovery and development of its offshore gas reserves to avoid the need for imports and boost industries from power to petrochemicals. Neighboring Venezuela has offered to export gas, but top executives at Ecopetrol and other producers have said that the country must prioritize developing its own resources.
As much as 4 trillion cubic feet (TCF) of natural gas reserves could be confirmed in Tayrona, Travassos said, which makes it a very promising project along with the Gorgon ultra deepwater gas field by Ecopetrol and Shell (SHEL.L) and another deepwater venture by Occidental Petroleum (OXY.N) and Ecopetrol to begin drilling in 2025.
The Tayrona block will be developed "as fast as possible because Colombia needs that gas," Petrobras Exploration and Production Executive Director Joelson Mendes said on Tuesday at the Offshore Technology Conference in Houston. "We have created the structure in the country for that."
The 2024 drilling campaign, set to begin in the second quarter, will include three wells, he said.
"They (Colombia) have asked us to speed up development," Mendes added.
Petrobras (PETR4.SA) has abandoned a plan to sell its 44% stake in a promising offshore gas project it shares with Colombia's Ecopetrol (ECO.CN) and now aims to rapidly develop the field, executives with the Brazilian state-controlled oil company said at an energy conference.
Petrobras and Ecopetrol last year announced a natural gas discovery at the Uchuva-1 deepwater well in the Tayrona block, 32 km (20 miles) off Colombia's coast. The Brazilian company two years earlier had offered to sell its stake following poor exploration results at a previous well, Orca-1.