Canacol to select Colombia gas pipeline contractor next month
Canacol Energy Ltd. plans by mid-April to select a contractor for its 300-km, 100 MMcfd Jobo-Medellin natural gas pipeline, having received final binding bids from four companies. The pipeline would enter service by December 2024, carrying gas from a processing plant in Jobo, Colombia, to local utility Empresas Publicas de Medellin (EPM) and distribution companies.
Canacol has a contract in place with EPM for 55 MMcfd and is negotiating with three local gas distribution companies for the balance of the initial 100 MMcfd. Pipeline design will allow expansion to 200 MMcfd with additional compression.
All bids under consideration are build, own, operate, maintain agreements, with Canacol not planning to take a stake in the project. The company expects the pipeline to cost $560 million.
Canacol also plans to test a deep new gas play in Middle Magdalena basin via the Pola-1 well. New production could be tied into Transportadora de Gas Internacional SA ESP’s 730-MMcfd pipeline system, which has 260-MMcfd spare capacity, according to Canacol, and a branch 10 km from the Pola-1 wellsite.
The company last year published total Middle Magdalena mean estimated unrisked prospective gas resources of 5.25 tcf, in which it would have a 1.05-tcf working interest.
Christopher E. Smith | Editor in Chief
Christopher brings 27 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 15 of them in midstream and transportation sectors.