IAHL Corporation (IAHL)

[Gators12]

The country also faces rising demand for gas and tightening supply. According to energy ministry planning unit UPME, Colombia could lose its natural gas self-sufficiency within 18 months unless new reserves are incorporated.

The grim outlook has led to plans to expand the Cartagena LNG import terminal, Colombia's only existing regasification facility. It also prompted officials to raise the prospect of reactivating a disused pipeline that would allow for gas imports from Venezuela.

In addition, the government continues to seek investors for the Pacific LNG terminal, which is expected to require investment of up to US$1bn. Bids in the latest tender process are due this month, but potential developers have raised concerns about who will bear the cost of the project and if it will be profitable.

There have been whispers that the looming supply crunch could force the government to back down on its decision to shelve auctions for new E&P contracts, even if it is just for natural gas exploration.

This, however, might be wishful thinking, given an absence of oil and gas sector experience on Camacho's resume and a pledge during his induction to “reduce the environmental impact of fossil fuels.”