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French company Total is looking for gas in Peru and the Gulf of Guayaquil
Monday, June 3, 2024 - 11:15
Total. Foto: Reuters.

Likewise, Eduardo Salgado, energy expert and member of Gas del Golfo, highlights the need to put out to tender the Campo Amistad project and update Termogás Machala to improve the electricity supply in Ecuador.

Eduardo Salgado, energy expert and part of the Gas del Golfo group, notes the need to put out to tender Campo Amistad and the repowering of Termogás Machala in order to improve thermal electricity generation in Ecuador.

He assures that they have learned that the Government is currently preparing a tender for Campo Amistad for US$ 1.2 billion, but warns that this must be done by inviting integrated companies and establishing clear bases so that it does not fail again.

It also indicates that the French company Total is currently studying the gas possibilities in Peru and would also be extending the studies to the Gulf of Guayaquil, where there would be a production capacity of up to 600 million cubic feet.

-The thermal energy deficit problems that afflict Ecuador could be alleviated through the use of natural gas. What would this process be like?

At this time gas production from Campo Amistad is minimal. It is delivering 15 million cubic feet to Termogás Machala. This is equivalent to 60 megawatts, but the plant's capacity is 340 MW. We have indicated this to the Minister of Energy through a letter jointly with Corpei. This possibility is important if one considers that the deficit could be, this year, between 500 and 600 MW. And thus the deficit would be reduced by 50%.

-But how to achieve it, what needs to be done?

You have to go in to repair the Termogás machines; two new turbines would have to be brought. The problem is that it has not been maintained. There is damaged machinery. This will cost several million. For example, a turbine alone would cost US$80 million and repairs a similar value.

-So you first suggest that there be a contest, a tender for Termogás Machala?

Yes. There must be a contest. Currently the machines are of Russian origin. It is somewhat difficult to make an open tender to bring machines from any source, since it is not known if they can be adapted. It would be easier for Russian machines to come and the Termogás Machala facility could be fine-tuned. The idea is that there will be a repowering in order to produce 340 MW.

-Part of your proposal is that Termogás increases its electricity production with diesel first, but how is it connected to the production of Campo Amistad...

If we want a quick solution it must be with diesel. This is because gas cannot be imported immediately. Regardless of that, there is a tender that the Government is launching in Campo Amistad for US$ 1.2 billion to produce gas from the Gulf. The important thing would be for an integrated company to come to explore, exploit and increase the production of natural gas. If it is now 15 million feet, the potential of Campo Amistad is 100 million feet. We must go to a tender like Peru is doing. In an opinion note by Walter Spurrier it has been announced that the French company Total is carrying out studies to find more natural gas in Peru and in the Gulf of Guayaquil. It is logical because the structures are connected underground.

-What potential is there in the Gulf from what you know?

There are three blocks, they are: 6, 39 and 40. The bidding should be done for all these blocks under a participation contract. It must be a well-done tender, prepared by prestigious consulting companies. Don't go to any company and don't fall. It must attract integrated companies that have capabilities in exploration, production, refining and marketing, both in import and export. Gulf gas is convenient and viable because it is close. Gas pipelines can be built at a maximum distance of 50 km, from the gulf to Durán or Daule, which are industrial zones. Mini plants must be built to regasify it, so that it can be consumed by industries.

-How many integrated companies of the type you mention are there around the world?

There are, for example, British Petroleum, Total de France, Exxon, Chevron, Oxy too, among those that I remember the most. If we want there to be a lot of investment, technology and to be seen as a country where investment can be made, we must have good foundations, among them, explaining that international arbitration does exist in Chile and Uruguay.

-Don't you think there could also be smaller companies, but associated in consortia?

Yes, consortia can be formed. The investment is in the billions. The tender is for US$ 1.2 billion, local companies do not have those resources.

-There is a hypothesis that they always fail in tenders to maintain large diesel imports and defend the status quo ... Do you think this is the case?

Partially I think so. Yes, there may be a certain blockage by large companies. But we must seek to break markets, so that bidding is not always done with them. If a good tender is carried out now, these structures will be broken.

-Do you think there should also be gas imports or would you only bet on local production?

Importing natural gas at this time is impossible. There is open talk that it can be done, but there is no infrastructure. Building the infrastructure will take at least two years. It would be a mistake if the new tender is launched allowing the Campo Amistad facility to be used. Industrialized gas cannot be mixed with raw gas.

-Among the proposals it is also known that an equivalent of 100,000 barrels per year could be replaced with gas. How viable is it?

Expert Raúl Ortiz Sanmartín says that reaching the maximum production of 600 million cubic feet that could be found in Gulf gas, 100,000 barrels of diesel could be replaced. This would lead to eliminating the diesel subsidy. It is cheaper and less polluting. But we are going step by step, first we must climb to 100 million feet.

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