Oil and Gas
Colombia is a major oil and gas player in South America, producing as much oil as the UK. Unlike regional neighbours Brazil and Guyana, the country’s exploration and production segment is predominantly onshore, with a diverse operating environment including the national oil company Ecopetrol and a variety of independent players such as GeoPark, Frontera Energy, Canacol Energy and SierraCol Energy.

In recent years, offshore E&P exploration in the Caribbean Sea has attracted growing interest from major players. Shell and Ecopetrol announced the ultra-deep water Glaucus gas discovery in 2023, while exploration and appraisal work is being conducted at the Uchuva and Orca discoveries by Petrobras and Ecopetrol, respectively. The latter is particularly keen on tapping offshore reserves, with part of its US$680-800mn 2024 expenditure plan earmarked for exploration work in the Caribbean.

Colombian oil and gas opportunities also include midstream projects. SPEC LNG, the operator of the country’s first and only LNG regasification terminal in Cartagena, is planning a 50MMcf/d expansion in order to meet increasing demand. Andes Energy, a private developer, has put forward plans to develop a 150Mcf/d land-based LNG import terminal in Colombia's Pacific coast. The LNG facility would be associated with a 270MW simple cycle power plant, which could be converted into a 400MW combined cycle scheme in a subsequent phase.

Downstream is also a key oil and gas sector in Colombia. Ecopetrol, which runs four refineries across the country, has announced plans to invest US$350mn in the development of a SAF refinery to supply the domestic commercial airline industry. A private developer has also announced plans to build a 150,000b/d refinery in Antioquia in order produce diesel, gasoline, jet fuel and naphtha.


Offshore Wind
Meanwhile in the renewables sector, Colombia launched a bidding round for offshore wind lease areas in December 2023 - the first such auction in Latin America. Designated blocks are located off the Caribbean coast, in the Magdalena, Atlantico, Bolivar, and Sucre departments. Bidders have until 24 August 2024 to submit proposals and are required to form a consortium with a state-run or mixed-capital energy company, with results expected by the end of 2024. Successful permits will grant developers exclusive rights to specific maritime areas for eight years, during which they will conduct feasibility studies, and, in turn, the temporary permit will convert into a 30-year concession. The Colombian government aims to achieve 7GW of offshore wind capacity by 2040.


Hydrogen
Furthermore, green hydrogen is another important sector in Colombia’s energy roadmap. The country set the ambitious target to reach between 1-3GW of electrolysis capacity by 2030, when annual production is being planned to reach around 20 million tonnes of green hydrogen. Ecopetrol, for instance, is developing two projects located at the Barrancabermeja and Cartagena refineries, with 60MW of electrolysis capacity each at a combined price tag of US$300mn.


These are exciting times to be in Colombia and the trade delegation will be an opportunity to meet the key players doing business in the country’s energy markets, obtain or expand the network of contacts and identify business opportunities.