Promigas is a Colombian company focused on the transport and distribution of natural gas, with 40 years of experience and operations in Colombia and Peru. During 2014, 50% of the natural gas sold in Colombia was transported through 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. Currently it is the main natural gas utility to 3m households in Colombia, a 38% market share, and to over 300,000 in Peru.
In 2014 Promigas registered a net profit of COP365bn ($134.3m). As of December 2014, Promigas had total assets of COP3.2trn ($1.2bn) on an un-consolidated basis and shareholders’ equity of COP1.7trn ($625.6m). Some of the firm’s main developments during 2014 included the application of a new regulatory framework, known as Vida Útil Normativa (Shelf Life Rules), with respect to certain tranches of its transport pipelines, and the award of a project to build the first liquefied natural gas (LNG) import terminal in Colombia.
Promigas has significant opportunities, both in Colombia and abroad, and both in its main activities (gas transport and distribution) and in new areas such as LNG development, and electricity generation and distribution. In Colombia, Promigas is expanding its transport pipeline network to new and expanded supply sources, mainly from gas fields in Cordoba and Sucre in northern Colombia. Additional new supply sources such as shale gas, coal bed methane (of which Colombia has significant reserves), and on-shore and off-shore conventional exploration would provide additional opportunities for Promigas to expand its pipeline network.
In gas transport, Promigas continues to look for opportunities abroad, such as those being tendered by the governments of Central and South America.
In Colombia, the gas distribution companies of Promigas continue to increase the number of users they attend, despite relatively high penetration levels, and continue to expand the non-banking loan portfolio they have accumulated under the brand Brilla, which is a complementary offering of the distribution companies with excellent results for their customers and the companies.
In the Latin American context, being a market developer for natural gas, Promigas is well positioned to replicate the successful Colombian experience of reaching high penetration levels in the use of gas (particularly for residential customers) in countries that are starting this process, such as Peru, Mexico, Central America and the Caribbean, and Brazil. One example of this is the exclusive distribution concession in northern Peru, awarded in 2013 to Promigas.
As mentioned previously, Promigas was also awarded the construction and operation of an LNG import plant in northern Colombia, allowing it to exploit the significant opportunities in this market in Colombia and Latin America, particularly in those countries with no current access to natural gas (such as those in Central America and the Caribbean) and that, therefore, require the development of not just LNG infrastructure, but also the complementary transport and distribution infrastructure.
In the electricity segment, Promigas continues to look for opportunities to expand its presence in distribution, mostly in Colombia. Promigas has also a small but growing presence in the co-generation and auto-generation segment, particularly on the Atlantic Coast of the country and it continues to look for opportunities to expand its current portfolio. Promigas also has a significant operation in associated services for the gas industry, like compression of gas, and it is exploring opportunities in those services for new or expanded fields and the construction, purchase or operation of further treatment plants in Colombia.