Puerto Bahia, Gasco to Build Liquefied Petroleum Gas Facility in Cartagena, Colombia
(P&GJ) — Frontera Energy Corp. announced that its subsidiary, Sociedad Portuaria Puerto Bahía S.A. (Puerto Bahia), and Gasco Soluciones Logísticas y Energéticas S.A.S. have entered into an agreement to develop a liquified petroleum gas (LPG) project at Puerto Bahia's port terminal in the Bay of Cartagena, Colombia. The project is expected to be operational by 2027.
Frontera owns a 99.97% equity interest in Puerto Bahia. The agreement includes the construction and operation of LPG facilities to address the increasing LPG supply deficits in the Colombian market. The market is projected to grow at 4% annually, presenting an opportunity for Puerto Bahia and GASCO to become a strategic destination for Colombian LPG imports.
Orlando Cabrales, CEO of Frontera, stated, " We are excited to enter into this Agreement with Gasco to build and operate LPG facilities at Puerto Bahia. Through the Agreement, Puerto Bahia and GASCO will bring LPG facilities on-line in 2027 to capitalize on increasing LPG supply deficits in the Colombian market at a time when the LPG market is expected to grow at 4% per year. These supply deficits present a unique opportunity for Puerto Bahia, in partnership with GASCO, to become the strategic destination for Colombian LPG imports."
The collaboration includes the development of a 20,400-ton LPG refrigerated storage facility at an estimated cost of $50 to $60 million, shared between Puerto Bahia and GASCO. Puerto Bahia's contributions are expected to be largely in-kind.
Puerto Bahia and GASCO will form a joint venture to develop, construct, and operate the LPG facilities. The project may expand to accommodate larger volumes depending on market demand. According to Colombia's Mining and Energy Planning Unit (UPME), the country consumes about 700,000 tons of LPG annually, expected to rise to 1 million tons by 2031. The new facility could supply up to 340,000 tons of LPG per year by 2030, accommodating two Very Large Gas Carriers (VLGC) per month.
This collaboration marks a significant step in meeting Colombia's growing energy needs and demonstrates the commitment of Puerto Bahía and Gasco to investing in the country's energy infrastructure.
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