According to the statement, the company is also in negotiation with Galileo Technologies to form a joint venture (JV). This JV will install terminals at other locations in Colombia, and supply end-user solutions with the aim of replacing diesel, fuel oil, CNG, propane and other fuels with LNG.
Charle Gamba, President and CEO of Canacol Energy, said: “Given the limited capacity of the gas pipeline infrastructure in Colombia, industrial, commercial and residential consumers not located along existing pipeline routes currently use 145 million standard ft3/d of CNG and propane that is transported long distances via truck as an energy source. LNG can replace diesel, fuel oil, compressed gas, propane, and other fuels at a considerable reduction in price given the relatively lower cost of natural gas and the large volume of liquefied gas that can be transported by truck. CNG for example costs three times more to transport than LNG, resulting in the potential for significant cost savings for consumers who switch to LNG. With our JV partners Galileo providing the technology, our objective is to build other liquefaction terminals at other strategic sites in Colombia with the goal of replacing the use of diesel, fuel oil, CNG, propane and other fuels with LNG at both lower cost to consumers and lower emission of pollutants.”
Over the course of 2019, Canacol Energy has installed four natural gas liquefaction modules purchased from Galileo at its main gas processing facility located at Jobo. According to the statement, the modules are capable of converting 2.4 million standard ft3/d of gas into 29 000 gal. of LNG. This LNG is reportedly being sold to a third party at the plant gate for distribution via trucks to their clients in Antioquia and Santander as far as 800 km from Jobo.
Currently, Colombia consumes 65 million standard ft3/d of CNG and 80 million standard ft3/d of propane, with a significant amount of the propane imported from the US. According to the statement, the aim of the JV with Galileo is to install terminals in other parts of Colombia close to gas pipelines where Canacol can physically ship or swap its gas to be liquefied, with the aim of replacing diesel, fuel oil, CNG, propane and other fuels with LNG.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/25112019/canacol-energy-commences-production-and-sale-of-lng-in-colombia/
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