Petrobras and Ecopetrol anticipate gaining licenses for an offshore gas project by mid-2026, which has confirmed reserves of 6 TCF. The project aims to alleviate Colombia’s gas deficit and is linked to construction plans for a pipeline expected to supply 13 million cubic meters of gas daily. Regulatory approvals and enhanced LNG capacity are essential for the project’s success.
On March 13, 2023, it was announced that Brazilian oil company Petrobras and Colombian firm Ecopetrol expect to obtain the necessary licenses for a joint offshore gas project in Colombia by mid-2026. Orlando Velandia, the head of Colombia’s hydrocarbons regulator, indicated that the project involves confirmed reserves of approximately 6 trillion cubic feet (TCF) of natural gas, making it commercially viable.
The partners plan to complete drilling a new well within this year while developing the project further. Before construction can commence, both an environmental license and a social license must be secured. This initiative, along with others in Colombia’s Caribbean region, is crucial for alleviating the country’s gas deficit, which has led to liquefied natural gas (LNG) imports and strategies to optimize natural gas consumption.
Velandia remarked that optimizing prior consultations may allow for the acquisition of the environmental license by mid-next year. This would set a timeline for the gas pipeline to be operational by late 2028 or 2029, marking the start of production from the Tayrona block, managed by Petrobras.
Petrobras’ head of exploration and production, Sylvia dos Anjos, reported that the project is expected to deliver approximately 13 million cubic meters per day of gas to Colombia through the pipeline. Despite current gas shortages, Velandia noted that there are no plans for a new bidding round for offshore areas, as many previously awarded onshore and offshore blocks are anticipated to advance to production soon, ensuring a stable supply.
Additionally, Colombia is enhancing its capacity to accept LNG imports by developing floating regasification facilities, an important move in bolstering the country’s energy infrastructure.
In conclusion, Petrobras and Ecopetrol are making significant strides toward advancing an offshore gas project in Colombia, with expected licensure by mid-2026. The project’s substantial gas reserves will help address Colombia’s gas supply challenges, allowing for increased self-sufficiency. As construction and development progress, the importance of regulatory approvals and enhanced LNG import capacity will play pivotal roles in its success.
Original Source: www.marketscreener.com
