Natural gas transmission in Colombia began in the 1960s on the Caribbean coast, thanks to a joint initiative between the government and private enterprise.

The Plan for Widespread Access to Natural Gas in Colombia was launched in 1986 to encourage the construction of transmission facilities that would connect the nation’s capital (Bogotá) and other major markets in central Colombia to the large natural gas reserves on the north coast.

The following factors, among others, were crucial to the success of this effort: definition of an appropriate regulatory framework, the regional gas pipeline program, a good energy policy, and the commercial efforts of companies in the sector.

An appropriate regulatory framework allowed for private investment, the creation of agencies to oversee the sector, and the implementation of a cross-subsidy system. The national government encouraged and supported the construction of regional gas pipelines. Through the Gas and Energy Regulatory Commission (CREG), it recognizes and remunerates these investments in the rates charged for natural gas transmission.

A recent study by the Residential Public Utilities Superintendent found natural gas to be the top-rated public utility in the country, according to those who use our services.

The following figures reflect the status of natural gas in Colombia. There are more than 4,5 million, commercial, industrial and residential users; 88 % of which belong to the lowest income sectors. Coverage of this service averages 65 % nationwide and is above 90 % in some areas. Forty-four per cent of the households in Colombia, which has a population of 41.2 million inhabitants, use natural gas. Colombia is a leader in the use of natural gas to power automobiles, having gone from 6,760 vehicles in 2000 to more than 233,000 in 2007. The economic benefits for society as a whole derived from the use of natural gas are estimated at more than USD$ 3 billion.