Colombia could become an exporter of natural gas within the next decade as it seeks to develop resources off the Caribbean coast, according to the head of national hydrocarbons regulator ANH. Speaking during a Colombian Petroleum Association (ACP) event, ANH president Armando Zamora said Colombia could help fill the void left by Russia following its invasion of Ukraine. "We are seeing that this is a possibility if all the potential that exists on the offshore coast materializes," Zamora said. The EU has committed to cutting Russian gas imports by two-thirds within a year while the US has announced a complete ban on fossil fuels from the country by the end of 2022 as global markets sever ties with Moscow. While Colombia's domestic market will remain a priority for gas offtake, exports could be a reality in the medium term if offshore exploration campaigns deliver expected results, according to Zamora. "Directors from Shell and ExxonMobil recently visited us and they told us that they are optimistic and looking at options, one of which is to export, depending on access to gas and local market demand," he said. “That would be a game changer. We would be a potential gas exporter, meeting demand that Russia does not supply.” He added, “of course, once the local market has been supplied, it can be exported. By next year, it will be possible to know if this idea is viable. Then it will take between five and 10 years to start extracting gas offshore.” Zamora said exports could initially be sent from floating liquefaction vessels in the Caribbean sea, adding that larger volumes would need to be turned into liquid form at an onshore facility. According to ANH, Colombia currently has eight active offshore E&P contracts that require minimum investments of US$1.6bn.
NEW AUCTION
Meanwhile, Zamora revealed that ANH is in the process of preparing for a new E&P licensing round despite political uncertainty about the future of new exploration projects. "We are preparing for the round ... so that it is ready before the end of this government [in August]," he said. "The preparation period requires at least six months, so ... it will be up to the next government to launch it." Colombians will go to the polls on May 29 with a runoff scheduled for June 19 should no candidate receive a majority of the vote. The frontrunner is leftist candidate Gustavo Petro, who has proposed halting new tenders for exploration contracts in an effort to accelerate the clean energy transition.