About 16% of industrial companies switched to coal amid limitations and deficits in gas supply

The measures respond to the tightness in supply and demand. Photo: iStock

About 16% of industrial companies switched to coal amid limitations and deficits in gas supply

TL;DR

  • 16% of large industrial companies in Colombia have switched from natural gas to coal, fuel oil, and LPG.
  • This shift was driven by supply limitations and contractual decisions, with companies opting for short-term economic alternatives.
  • The switch to alternative fuels has led to an estimated annual increase of 164,000 tons of carbon dioxide emissions.
  • Colombia imports 21% of its gas consumption, and potential El Niño intensification could increase demand for thermal generation.
  • Existing regasification infrastructure, like the Barú plant, operates at maximum capacity (475 million cubic feet daily).
  • New regasification infrastructure projects are under evaluation but depend on final investment decisions and regulatory approvals.
  • The Pacific project is the only confirmed new infrastructure for the short term, with an estimated capacity of 60 million cubic feet daily.
  • The government's agility in granting necessary permits is critical for new infrastructure to become operational before periods of high demand.
  • Options like reactivating existing infrastructure (e.g., the Antonio Ricaurte gas pipeline) and utilizing liquid imports are also being considered.