Promigas and Vopak to gauge market interest in Cartagena LNG terminal expansion

Colombian gas distributor Promigas and Dutch tank storage firm Vopak have invited market participants to express their interest in additional regasification capacity at the country’s only FSRU-based LNG import facility in Cartagena.

Sociedad Portuaria El Cayao, or SPEC LNG, operates the terminal in which Promigas has a 51 percent stake while Vopak holds the rest.

Back in November 2021, Promigas revealed plans to boost capacity at the FSRU-based facility.

The 170,000-cbm Hoegh Grace FSRU, owned by Hoegh LNG Partners, which is now fully owned by Hoegh LNG, started serving the LNG import facility under a charter contract back in 2016.

Since it started operations in December 2016, SPEC LNG said it had carried out 35 ship-to-ship operations.

Also, the facility has been the country’s connection with international LNG markets to ensure reliability to Colombia’s energy system by supporting nearly 2,000MW, equivalent to 60 percent of Colombia’s gas-fired electricity generation capacity, according to SPEC LNG.

Potential shortage of natural gas supply in Colombia

Currently, the terminal has a capacity of about 400 million cubic feet per day.

SPEC LNG said in a statement on Monday that the capacity expansion could address a potential shortage of natural gas supply in Colombia by 2027-2028.

The non-binding expression of interest started on January 30 and ends on February 20.

Expansion plans consist of increasing its regasification capacity to 450 mmscfd by the end of 2023 as well as up to a total of 530 mmscfd as of the second half of 2026.

This expression of interest “aims to assess the market participants´ demand for the potential additional capacity and advance to a final investment decision involving the foreseen expansion plans,” it said.

Also, the expansion projects of SPEC LNG would “strengthen and ensure the medium and long-term supply of natural gas in Colombia, key for assuring a path to the energy transition,” the JV said.

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