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Canacol to Construct a New Gas Pipeline in Colombia

Last Updated on 08th January 2024

Canacol Energy Ltd. has signed a long-term take-or-pay natural gas sales agreement with Empresas Publicas de Medellin ESP (EPM) to fund the construction of a new 20-inch, 300-kilometer pipeline that will allow Canacol to sell up to 100 MMscfd into Colombia's interior market. If demand arises, the pipeline will be expanded to 200 MMscfd.


Canacol will begin delivering gas to EPM in Medellin on December 1, 2024, with a minimum volume of 21 MMscfd, increasing to 54 MMscfd on December 1, 2025, and remaining at that level until the contract expires on November 30, 2035.


Canacol's gas treatment plant in Jobo will serve as the starting point for the pipeline, which will run south to Medellin.


By the end of the first quarter of 2022, Canacol intends to have, finalized work on the permits to submit to the National Authority of Environmental Licenses for approval, finalized selection of a company to build and operating the pipeline, arranged financing, begun negotiations with consumers regarding an additional 45 MMscfd to fill the pipeline’s initial capacity.


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