Brazil’s Petrobras and Colombia’s Ecopetrol could secure licenses for a joint offshore gas project by mid-2026. The project has confirmed reserves of 6 TCF of gas, aiming to address Colombia’s gas deficit and improve infrastructure. Key licenses are needed for construction, with production projected to start around 2028 or 2029, while the country prepares to expand LNG import capacities.
According to Orlando Velandia, the head of Colombia’s hydrocarbons regulator, Petrobras and Ecopetrol could acquire the necessary licenses for their joint offshore gas project by mid-2026. This project has confirmed reserves of approximately 6 trillion cubic feet (TCF) of natural gas, making it commercially viable. The companies aim to complete the drilling of a new well within the year, with plans to develop the infrastructure following the acquisition of required licenses.
Before construction can commence, an environmental license and a social license will be required. The new project, located in the Caribbean, plays a vital role in addressing Colombia’s gas deficit, which has led to increased imports of liquefied natural gas (LNG) and adjustments in usage by major gas consumers throughout the country.
Velandia stated, “If we are able to optimize the prior consultations that we may finish this year and obtain the environmental license in the middle of next year, that gives us a final horizon to have everything for the gas line toward the end of 2028 or 2029, and begin production.” The Tayrona block, operated by Petrobras, is key to this initiative.
The gas project is expected to supply around 13 million cubic meters per day through a pipeline to Colombia. Despite the current gas deficit, Velandia noted that Colombia does not plan to initiate a new bidding round for offshore blocks, as previously awarded areas are anticipated to transition from exploration to production soon, ensuring a reliable supply.
Additionally, Colombia is enhancing its capability to handle LNG imports through the development of floating regasification facilities, which will further support the country’s energy needs.
In conclusion, the joint offshore gas project between Petrobras and Ecopetrol is set to move forward with the licenses expected by mid-2026. This project, which aims to mitigate Colombia’s gas deficit by confirming substantial gas reserves, is crucial for the country’s energy strategy. Despite current challenges, the planned infrastructures and enhancements, including LNG import capabilities, promise a secure energy future for Colombia.
Original Source: www.marketscreener.com
