Buenaventura-Yumbo Gas Pipeline

From Global Energy Monitor

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This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Buenaventura-Yumbo Gas Pipeline is a proposed gas pipeline running from the Port of Buenaventura, Colombia to Yumbo, Colombia.

Location

The pipeline would start at the Pacific LNG Terminal near Buenaventura, Colombia and run to Yumbo, in Valle del Cauca department, Colombia, where it would connect with the Mariquita-Cali branch of the TGI Pipeline Network.[1]

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Project Details

  • Owner: to be determined through government tender
  • Parent company:
  • Capacity: 400 million cubic feet per day (MMcfd)[2]
  • Length: 110 km / 68 miles[3]
  • Diameter:
  • Status: Proposed
  • Start Year: 2026[4]
  • Financing:

Background

Originally proposed in 2017, the Buenaventura-Yumbo gas pipeline is to be built in conjunction with the new Pacific LNG Terminal in the Bay of Buenaventura on Colombia's Pacific coast. The proposed LNG terminal would receive imported natural gas from Peru to meet a projected increase in gas consumption in coming years. The pipeline, with an estimated length between 75 kilometers[5] and 110 kilometers[3] and a capacity of 400 MMcfd[2], would connect the LNG import facility to Yumbo, Valle del Cauca in southwestern Colombia. The pipeline's anticipated cost is US$250 million[2], while the total project cost including the LNG terminal has been estimated at up to US$700 million.[6]

In November 2018, the Colombian government announced its initial plan to launch a tender for the gas pipeline and LNG terminal project.[7] In July 2020, after a series of delays, the government relaunched the tender process. Under the new tender timetable, potential investors were to place bids with Colombia's mining and energy planning agency (UPME) by February 2021, with a single bidder to be awarded a BOO contract for construction and operation of both the FSRU and the pipeline in March 2021. Plans called for both the pipeline and the LNG terminal to be operational between 2023 and mid-2024.[3][5] Colombian pipeline operator TGI was reportedly contemplating a bid for the project as of 2020.[8]

In October 2021, UPME announced that it had canceled its tender for Pacific LNG terminal and pipeline project due to lack of interest.[4][9][10] Analysts have cited several potential reasons for the unsuccessful tender, including the project's complexity and high financial risk factor, seismic threats, changing economic conditions, and opposition from domestic gas producers and environmentalists.[9] However, UPME has not ruled out reviving the tender process at a future date.[9][10]

Opposition

Opponents of the Buenaventura-Yumbo pipeline project have objected to its completion on various grounds, including environmental concerns about bringing Qmax ships into the protected waters of Buenaventura Bay, logistical concerns about the Pacific LNG Terminal's proximity to military installations on Isla Naval, and economic concerns related to the high cost of imported natural gas.[11]

Articles and resources

References

  1. "2018: Sudamérica prepara licitaciones de transporte de hidrocarburos". BNamericas. January 4, 2018.
  2. 2.0 2.1 2.2 "La licitación de la planta y el gasoducto de Buenaventura saldría en dos meses". La República. August 26, 2019.
  3. 3.0 3.1 3.2 "Investors eye LNG project in Colombia | News | IJGlobal". IJGlobal. February 25, 2020.
  4. 4.0 4.1 Colombia aborts Pacific LNG tender, BN Americas, Oct. 25, 2021
  5. 5.0 5.1 "COLOMBIA RELAUNCHES BID PROCESS FOR PACIFIC LNG IMPORT TERMINAL". Shearman & Sterling. July 15, 2020.
  6. "Colombia's LNG terminal finally moves | News | IJGlobal". IJGlobal. July 20, 2020.
  7. "LNG Industry Annual Report" (PDF). GIIGNL. 2019.
  8. "Colombiana TGI mantiene interés por proyecto de GNL". BNamericas. May 27, 2020.
  9. 9.0 9.1 9.2 "UPME declara desierta la convocatoria para buscar el inversionista de la Terminal del Pacífico en Colombia". GN Global. October 25, 2021.
  10. 10.0 10.1 "ACTA DE DECLARATORIA DE CONVOCATORIA DESIERTA - CONVOCATORIA PÚBLICA UPME GN NO. 01-2020" (PDF). UPME. October 21, 2021.
  11. "Los pecados que lleva a cuestas la regasificadora del Pacífico". Portafolio. February 4, 2020.

Related GEM.wiki articles

External resources

External articles

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