Friday, September 4, 2015

Amid oil crisis, growth in Colombia's natural gas industry

Although the Colombian oil industry is still mired in a lengthy state of crisis, Colombian natural gas company Canacol Energy Ltd. is busy negotiating new supply deals, as it expects to grow its natural gas production by more than 200% by the end of the year. Canacol predicts that it will grow gas production from 25 million cubic feet per day right now to 90 million cubic feet per day by the end of the year.

Canacol CEO Charle Gamba told Bloomberg in a telephone interview that “We are currently working on a number of smaller contracts that we hope to bring on stream early next year. We are hoping that we can produce right to our productive capacity, which will be 120 million cubic feet.” Nonetheless, Gamba explained that Colombian demand for natural gas is finally starting to outpace its supply, as the large but aging fields operated by Chevron are in decline.


In other oil-related news, Colombia business journal La República reported on recent reports that China plans to begin reforming its oil policy to bring the value of Chinese oil futures more into line with the Brent crude oil prices. Given the ongoing oil crisis in Colombia, the country’s business press has been carefully staying abreast of any global oil developments that might have an impact on oil prices.

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