Energy & Utilities
From The Report: Colombia 2017
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The Colombian energy sector can look forward to increased investment in 2017 and 2018. With a crisis in the electricity sector narrowly avoided, the government is reassessing its strategy to improve energy security. In the hydrocarbons segment, 2017 will see major investments in offshore exploration, which represents the best possibility for the country to maintain energy self-sufficiency, especially with an additional 1500 km of barely explored Pacific coastline. A restructured Ecopetrol operating on a more cost-conscious basis will also provide revenues for the Colombian state as it looks to implement its post-conflict energy policies. This chapter includes interviews with Francisco José Lloreda, President, Colombian Petroleum Association; and Bernardo Vargas Gibsone, President, Interconexión Eléctrica (ISA).

Articles from this Chapter

Overview

Opportunity knocks: Peace deals, offshore exploration and renewed interest in energy
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After a challenging 2016, the Colombian oil industry entered 2017 with renewed optimism. In line with other crude-exporting countries, the fall in global oil prices starting in mid-2014 affected investment in the sector as well as government coffers. Country-specific problems during this time included a continued security threat from armed rebel groups in remote regions, and a lack of major new oil and gas discoveries. In 2017, however, the peace deal with FARC may open up exploration opportunities…

Interview

Pent-up energy: Francisco José Lloreda, President, Colombian Petroleum Association, on the state of the oil and gas sector
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Interview:Francisco José Lloreda What steps are being taken to improve investor confidence in Colombia’s oil and gas industry as legal uncertainties prevail in the sector? FRANCISCO JOSE LLOREDA: The Colombian government has been introducing some measures to further improve investor confidence, principally through the adjustments made to National Hydrocarbons Agency (Agencia Nacional de Hidrocarburos, ANH) contracts. These modifications include guarantee requirements and greater flexibility…

Analysis

Gas giant: Offshore exploration bodes well for future natural gas exports
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In November 2016 Colombia received its first import of liquefied natural gas (LNG) at the Sociedad Portuaria El Cayao (SPEC) terminal in Cartagena. The cargo, sourced from Trinidad and Tobago’s Atlantic LNG facility, was delivered by a floating storage regasification unit (FSRU) owned by Norwegian firm Höegh Grace. A year after a serious energy shortage due to weak hydroelectric production, the development of the Cartagena terminal provides additional energy security to Colombia’s Caribbean…

Interview

Bouncing back: Bernardo Vargas Gibsone, President, Interconexión Eléctrica (ISA), on the power market and a way forward
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Interview: Bernardo Vargas Gibsone How were the challenges faced by Colombia’s electricity sector in 2016 handled in an efficient way, and what lessons were learned? BERNARDO VARGAS GIBSONE: The challenges Colombia faced at the beginning of 2016 were of historical dimensions. Since the end of 2015 the country has been hit hard by the prolonged El Niño climatic phenomenon – probably the most intense we have ever seen as it lasted over fourteen months. Simultaneously, in February 2016 we saw…

Analysis

Fresh perspective: Renewables to bring clean energy to Colombia
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In recent years Latin American nations have enthusiastically embraced renewable energy sources, and a total of $16.5bn has been invested in the segment across the continent. In November 2016 Chile inaugurated the $343m, 196-MW El Romero solar power plant, which provides enough power to fuel a city of 1m people; while Costa Rica ran on entirely clean energy for seven months in 2016. Yet while its neighbours have introduced attractive incentive schemes and auction processes for clean energy…