Chinese consortium signs agreement with Canacol Energy to build gas pipeline
Photo: Natural gas lines are built. By: Ohikulkija. Source: CC – Wikimedia Commons.
Shanghai Engineering and Technology Corp (Setco) and Canacol Energy signed an agreement to build a gas pipeline, 289 kilometers long and 22 inches in diameter in the Department of Antioquia (Colombia). The pipeline would run from the Jobo gas facility (Department of Córdoba) to the City of Medellín.
Both companies agreed that the Chinese consortium would be responsible for paying for the entire pipeline, which would make it responsible for owning, operating, and maintaining it, while Camacol would be responsible for the transportation, for which it will pay a fixed fee taking into account the variables of the volume of gas and the total time the agreement lasts.
According to La República newspaper, Canacol’s president and CEO Charle Gamba said: “Building this pipeline will allow Canacol to send our gas to Colombia’s inland market and will raise our gas sales above 300 million standard cubic feet per day (MMscfpd) by 2025. The project will also provide energy security to customers in Colombia’s interior, as Ecopetrol’s gas fields located there will begin to decline in 2024.”
New contracts are currently being drawn up for long-term gas sales with customers in different parts of Colombia, the project is scheduled to operate in December 2024 and aims to increase its production capacity to 300 (MMscfpd).
Top headline:
La República (Colombia): Canacol Energy firmó un acuerdo con consorcio chino para construir un gasoducto.
Find out more:
Valor Analitik: Canacol Energy firma con consorcio chino para construcción de gasoducto de Jobo a Medellín.