Canacol Energy Ltd. has commenced the production and sale of LNG, the first such operation in Colombia. The company is also in negotiations with Galileo Technologies to form a joint venture which will install terminals at other locations in Colombia and supply end user solutions with the objective to replace diesel, fuel oil, propane and other fuels with LNG, which cleaner, cheaper, and safer solution that combines both lower cost with lower emissions of pollutants.
“Given the limited capacity of the gas pipeline infrastructure in Colombia, industrial, commercial, and residential consumers not located along existing pipeline routes currently use propane that is transported long distances via truck as an energy source. LNG can replace diesel, fuel oil, propane, and other fuels at a considerable reduction in price given the relatively lower cost of natural gas and the large volume of LNG that can be transported by truck. With our joint venture partners Galileo providing the technology, our objective is to build other liquefaction terminals at other strategic sites in Colombia,” said Charle Gamba, President and CEO of the Corporation.
During the course of 2019 the company installed four natural gas liquefaction modules purchased from Galileo at its main gas processing facility located at Jobo. The modules are capable of converting 2.4 million standard cubic feet per day (MMscfpd) of gas into 29,000 gallons of LNG. This LNG is being sold to a third party at the plant gate for distribution via trucks to their clients in Antioquia and Santander as far as 800 kilometers from Jobo.
65 MMscfpd of CNG and 80 MMscfpd of propane are currently consumed in Colombia, with a significant amount of the propane being imported from the United States. The objective of the joint venture with Galileo is to install terminals in other parts in Colombia close to gas pipelines where Canacol can physically ship or swap its gas to be liquefied.