Promigas is a Colombian company focused on the transportation and distribution of natural gas. With 40 years of experience, the company has operations in Colombia and Peru. During 2013, 48% of the natural gas sold in Colombia was transported through the Promigas grid. Its extensive network of more than 2900 km of gas pipelines is one of the country’s main energy backbones.
Throughout its history, Promigas has been the key player in the development and penetration of natural gas use in the country. It is the main natural gas supplier to 2.8m households in Colombia – a 40% market share – and more than 163,000 in Peru.
In 2013 Promigas registered a net profit of COP442bn ($221m), an 83.6% increase compared to 2012. In December 2013 Promigas had total assets on an unconsolidated basis of COP2.8trn ($1.4m) and shareholder equity of COP1.6trn ($800m).
Some of the company’s main corporate developments during 2013 were the inauguration of the Magdalena River sub-fluvial crossing, the longest in South America, and presenting the winning bid for a 21-year concession to service more than 150,000 users in cities in northern Peru.
As a market developer for natural gas in Latin America, Promigas is well positioned to replicate the successful Colombian experience of reaching high penetration levels in the use of gas, particularly for residential customers. This could be achieved in countries that are only beginning the process, such as Peru, Mexico, Brazil and those in Central America and the Caribbean. One such example is the exclusive distribution concession awarded to Promigas in 2013 for northern Peru.
Promigas was also recently awarded the construction and operation of a liquefied natural gas (LNG) import plant in northern Colombia, making this the company’s second LNG project – the first one being a micro-LNG plant in Barranquilla. The plant will allow the company to exploit the significant opportunities in this market in Colombia and Latin America. This is particularly true for countries with no access to natural gas, which then requires the development of not just LNG infrastructure but also the complementary transport and distribution infrastructure.
In the electricity segment, Promigas continues to seek out opportunities to expand its presence in distribution, mostly in Colombia. It also has a small but growing presence in the co-generation and auto-generation segment, particularly on the Atlantic coast of the country, and continues to look for opportunities to expand its current portfolio of projects.
Finally, Promigas has a significant presence in the areas of associated services to the gas industry, such as gas compression, and is exploring additional opportunities in those services for new or expanded gas fields and the construction or acquisition and operation of gas treatment plants.
Promigas has significant opportunities for growth in both its main activities – gas transport and distribution – and in new areas such as LNG development and electricity generation and distribution. It is also expanding its transport pipeline network in Colombia to service new demand and new or increased supply sources.
With new supply sources such as shale gas and coal bed methane – of which Colombia has significant reserves – onshore and offshore conventional exploration offers additional opportunities for Promigas to expand its pipeline network.
In the gas transport segment, Promigas continues to look for opportunities abroad and projects such as those being tendered by the governments of Central and South America, which are of special interest to the company. Promigas distribution companies continue to increase the number of users they service in Colombia, despite relatively high penetration levels, and to expand the non-banking loan portfolio they have accumulated under the brand Brilla, the distribution companies’ complementary offering.
You have reached the limit of premium articles you can view for free.
Choose from the options below to purchase print or digital editions of our Reports. You can also purchase a website subscription giving you unlimited access to all of our Reports online for 12 months.
If you have already purchased this Report or have a website subscription, please login to continue.