Colombia’s Mines and Energy Planning Unit (UPME) is moving forward with the structuring of two tenders for midstream natural gas projects in Colombia—an LNG regasification plant and a pipeline.
The two procurement procedures are part of the government’s push to increase the country’s gas supply, adding to the Ecopetrol-controlled gas fields Cusiana and Cupiagua, both in Casanare, and Ballena, in La Guajira. Bidders will be asked to present offers to finance, build, operate, and maintain the projects.
The first tender is for the Pacific’s Regasification plant in the Buenaventura Bay, Valle del Cauca department, which will have a capacity of 400 million cubic feet per day. UPME expects the plant to require an investment of $350 million.
The second process is for the 68.35-mile (110 km) Buenaventura-Yumbo pipeline, in the Valle del Cauca department. The $250 million pipeline is expected to transport 450 million cubic feet per day and is designed to distribute gas from the Pacific’s Regasification plant to the rest of the country.
UPME has so far only published preliminary documents but is looking to release the final tender documents before the year ends. The projects are expected to start commercial operations by February 2023.
UPME is also working on other smaller procurement procedures to complement the projects in Valle del Cauca. They include:
- the expansion of Mariquita-Gualanday, in Tolima,
- the bidirectionality of the Yumbo-Mariquita pipeline, in the interior, and the Ballena-Barrancabermeja pipeline, connecting to the Caribbean coast, and
- the installation of compressor stations in the El Cerrito-Popayán pipeline, between the Cauca and Valle del Cauca departments.