Andes Energy is advancing plans to build an LNG regasification terminal at Colombia’s Pacific coast to increase gas deliveries to utilities in the southwest of the country. In Phase 1, the land-based LNG import terminal would regasify 150 million cubic feet per day and deliver gas to
a 270 MW peaking power plant which could be expanded to 400 MW.
Investment for the project’s first stage – comprising the regas terminal and the power plant – is anticipated to total $350 million. Further funds will be needed to almost double the capacity of the open-cycle power plant and increase pipeline capacity from the LNG terminal to industrial gas offtakers in the region around Cali.
"We are in advanced conversations with different thermoelectric offtakers and with large industries in the region," Andes Energy co-founder Manuel Tenorio told local media, suggesting the company might soon be able to sign gas supply contracts.
Electricity produced at the OCGT is meant to be sold in advance to guarantee a stable and secure rate of return. To that end, Andes Energy is preparing to participate in the government’s next auction for firm energy obligations in February 2024.
External investors also showed some interest in the integrated LNG-to-power project, Tenorio said without disclosing details. According to the Andes Energy CEO, the company’s project has gained momentum after a $700 million tender for construction of a proposed rival Pacific LNG terminal and associated pipeline was declared void.
