On August 5, the third delivery of the digital dialog series took place within the framework of the Latin America & Caribbean Gas Conference (LGC), dedicated to the gas outlook in Colombia.

This series is organized by IGU (International Gas Union), Olade (Latin American Energy Organization), and ARPEL, supported by Energy Net.

The panel was formed by Alexandra Hernández, VP of Regulatory and Economic Affairs of the Colombian Petroleum Association (ACP); Andrés Sarmiento, President of Naturgas; Andrés Pontón, Gas & LPG Manager from Ecopetrol, and Juan Pablo Henao, VP of Business Development from TGI.

The moderator was Carlos Cortés Simón, Executive Chairman of the Association of Natural Gas Companies (AGN) and Regional Coordinator for Latin America from IGU.

The virtual webinar addressed different topics, such as Colombia’s long-term energy strategy and the role of natural gas, gas as a key driver in the decarbonization process, how to face the potential supply shortage in the medium term, LNG, and future tenders, among others.

One of the main messages expressed by the speakers was that natural gas will continue to play a key role in the Colombian energy matrix, in line with the estimates made for the global energy matrix.

At the national level, the consolidation of natural gas/electricity is estimated to reach 50% of energy demand by 2050, suggesting a growth of natural gas and non-conventional renewable energies, together with the consolidation of H2.

Reducing greenhouse gas emissions, improving air quality, and complementing with renewable energies were highlighted as the main drivers for growth. According to the speakers, 50% of the growth is expected to come from the transport sector (public and freight) and 30% from coal substitution in the industry.

Today, the sector generates 100,000 jobs and represents 1% of the Gross Domestic Product (GDP). Ten point two million Colombians are natural gas users.

Meanwhile, Ecopetrol has made a commitment to investing US$ 1.3 billion in the gas value chain over the next three years, and is considered the energy company to support the development of renewables and the elimination of routine emissions by 2030.

Naturgas stated that an inventory of sectorial projects identified investments of nearly US$ 3 billion for the next three to four years, both in exploration and production, midstream and distribution, with the potential to benefit 360,000 users.

Over the last five years, 40 production fields and investments of US$ 2 billion have entered the market, which today supplies 22% of the gas supply, replacing the natural decline of other fields. There is also some potential for the offshore and unconventional fields.

Finally, the virtual meeting emphasized that demand must develop in step with supply, and that there are four key points to achieve this as a sector: to reassure consumers and guarantee that sufficient gas will be supplied, to make physical connections to integrate the markets, mainly the Atlantic Coast with the inland, to simplify the regulation in commercialization, and to work in sectors, with clear signs of a policy to foster investment.