Although the government has said that local gas is sufficient, Luz Stella Murgas, president of Naturgas, insists that it is already being imported.
On Tuesday 17th, Luz Stella Murgas, president of the energy company Naturgas, presented the report “Natural gas in figures 2024”.
“In Colombia, there will be a deficit until a project of the magnitude of Sirius allows us to become self-sufficient again,” said Murgas. To avoid rationing in 2025, according to the union, it is already necessary to turn to external sources.
Throughout the year, there have been different versions about the future of natural gas, as the Colombian government has stated that there is enough local gas to supply demand, but the traders are already importing, taking into account that some contracts from three years ago expired on November 30.
Colombia has been importing gas since 2016, but only for thermal plants (which generate energy). Gas had not been imported to meet essential demand (homes, businesses and vehicles) and industry.
“To cover the December deficit, we had only two gas offers on the market, one for imported gas, equivalent to 4% of the total national demand, and a second equivalent to only 1.4% of the demand. Last week, Ecopetrol supplemented its offers for December 31. This is how we are going to spend Christmas. (...) We have to import from December 1, 2024 until a project of the magnitude of Sirius comes into operation,” said Murgas.
The union said that instead of buying a basket of eggs, they are currently buying one egg a day to cover the deficit.
“If an egg breaks, we won’t have to make breakfast.” Due to regulatory issues, at this time it is not possible to buy gas on a longer term basis, but progress has already been made on the necessary decree (which enables long-term contracts), but the CREG has yet to publish the resolution in consequence of this decree.
Murgas assures that gas purchased in the long term will have better prices than buying small quantities. He warns that gas prices will rise in proportion to the amount that has to be imported, but that the prices of gas produced in Colombia, “gradually, under market conditions, will adjust to import parity prices.” At this time, the deficit is in the interior and southwest of the country.
As of October 2024, 19 exploratory wells were drilled, a considerable drop compared to recent years.
Exploration activity has been declining since 2015 and the trend has not been reversed until now.
SIRIUS, KEY TO BEING SELF-SUFFICIENT
In early October, Ecopetrol and Petrobras made this announcement (which was confirmed this month). Why is this such an important figure?
As of December 2023, according to the National Hydrocarbons Agency (ANH), proven gas reserves in the coffee-growing country were 2.3 cubic terabytes, but with Sirius these could increase the country's current gas reserves by 200%.
Naturgas said the discovery in Sirius will supply 45% of demand.
OTHER DATA ON NATURAL GAS
- Casanare is the Colombian department with the highest production, with 52%, followed by Córdoba and La Guajira.
- The largest producer is Ecopetrol, with almost 80%.
- Gas occupies second place in the country's primary energy matrix, with 25%.
- 36 million Colombians use natural gas, 70% of the country.
- Natural gas is key in the energy transition, because it has low emissions compared to traditional fuels.
- In 2023, the industry contributed $2.9 billion (US$ 667 million) in royalties and taxes, a contribution of 0.1% of GDP and 1% of the Nation's total tax collection in 2023.
