Colombia considers long-term contracts for gas imports to cover the deficit and lower prices

Edwin Palma, Minister of Mines and Energy in Colombia, said that the government may sign long-term contracts for gas imports to help cover its energy shortage and reduce prices.

According to the Colombian Natural Gas Association, (Naturgas), Colombia is facing a shortage of gas of 7.6%. This is partly due to a lower production as part of President Gustavo Petro’s push towards cleaner energy policies.

The minister stated that "we've worked with Naturgas and Energy and Gas Regulation Commission to weigh different alternatives and regulatory stipulations", in order to allow natural gas sales over a period of 3-5 years.

Naturgas' Luz Stella Mugas stated earlier this week that Colombia is expected to have a gas deficit between 2026-2028. She said there would be a need to contract for nearly 190 million cubic foot of gas by 2026.

Gas prices in some places rose by as much as 30% at the beginning of this year.

"The price hikes we've seen in various parts of the nation must be reversed." Palma stated that there must be a win-win situation.

The minister said that "the country must win, but so too do consumers who face their gas and energy bills every day." Reporting by Nelson Bocanegra, Writing by Rafael Escalera Montoto, Editing by William Maclean & Peter Graff

(source: Reuters)