Colombia’s energy sector is facing a significant challenge as it heads towards a major natural gas shortage by next year. Despite the country’s substantial potential, decreasing onshore production, delayed offshore discoveries, and President Gustavo Petro’s focus on renewable energy are creating ongoing challenges in the oil and gas market, which accounts for roughly 10% of Colombia’s GDP and 20% of its exports.
The situation is further exacerbated by the effects of El Niño, which has reduced hydropower generation, increasing reliance on natural gas for electricity and boosting demand amid tight supply. By 2025, Colombia’s natural gas supply is projected to fall short of demand by 17%, according to state-owned oil producer Ecopetrol SA. Furthermore, the country’s proven oil and natural gas reserves can last only around seven more years at the current extraction rate.
While recent gas discoveries offer some hope, Colombia is still grappling with the challenge of declining reserves and struggling production. In response, Ecopetrol plans to invest up to $6.7 billion in 2024 to boost exploration and production activities, as well as developing new technologies to improve efficiency and sustainability in the sector.
Recognizing the potential in Colombia’s natural gas market and Latin America, Rod Lewis, a self-made billionaire and founder of Lewis Energy Group, established a private subsidiary named Lewis Energy Colombia, which has operated in the country for over 17 years. To realize its full potential, Lewis Energy Colombia was acquired by the newly listed LNG Energy Group Corp. (TSXV:LNGE) (OTCQB:LNGNF) (FRA:E26) in August 2023.
LNG Energy Group, with its experienced management team and board of directors, is now poised to capitalize on the Latin American energy opportunities identified by Rod Lewis, who remains the largest investor in the company, demonstrating his commitment to the region and the team driving business value.
This news story relied on a press release distributed by News Direct. Blockchain Registration, Verification & Enhancement provided by NewsRamp™. The source URL for this press release is Texas Billionaire Bets Big on Colombia’s Natural Gas Market.