By contrast, this year’s eleventh edition, which seeks to reflect the state of the art of natural gas in Colombia and in the world, states that as a consequence of the worldwide economic crisis, there has been a decrease in production of this fuel for the first time in 40 years. In our country, during 2009 these signs are reflected in the decrease in the industry’s consumption.

“This report ratifies the commitment assumed by Promigas with the gas sector in offering all interested actors updated information for reflection on the outlook and evolution of natural gas in Colombia and the world. Likewise, in this analysis we find that although the world economic dynamic in the last two years has shown clear signs of a crisis and the behavior of this fuel has shown decreases that should not be ignored, these may be easily recovered if we have a promising market for evolution.”, said Antonio Celia Aparicio, President of Promigas.

Behavior of natural gas in Colombia

The report highlights that the production capacity of the La Guajira field was expanded with an investment of US$300 million to 700 Mpcd (Million cubic feet daily) in the last two years, which allowed exporting gas to Maracaibo and increase the supply of this fuel to the center of the country. In 2009, production in the La Guajira fields increased by 18%, compared to the production in the Eastern Basin, which decreased by 4%.

The volume of gas transported during the last decade increased by 376 Mpcd, 66% more than in 2000. Today, the transportation of natural gas is headed by the center of the country with 61% of the total transported product, replacing the Caribbean Coast which held this place in the early 2000s.

The region with the largest number of natural gas users in Colombia is the Center Region with 52%, followed by the Caribbean Coast with 22%, the Pacific Coast with 13%, the Eastern Region with 7% and the Coffee Growing region with only 6%. The growth of users connected to natural gas in the last decade in the city of Bogota is also highlighted, corresponding to close to 800,000 additional users. 

85% of total natural gas residential users is concentrated in strata 1, 2 and 3. More than 2,600,000 users in these strata connected to the service during the last decade. 

Concerning natural gas consumption, the report states that an increase in the Colombian electrical sector was evidenced in the last year due to the “El Niño” phenomenon. The Central region has the highest ranking in this category in the country, given that in 2009 it participated with 58% of natural gas consumption of the regulated market. 

On the other hand, in the last ten years approximately 296 thousand vehicles converted to vehicular natural gas -GNV- in Colombia. However, since 2006 the growth of annual conversions has slowed down, which translated into 8% growth in the last year. 

Currently more than 30 towns in Colombia had GNV. Bogota is the city with the largest number of converted vehicles with a number close to 100,000 in the last decade. 

On the other hand, the rise of virtual gas pipelines in Colombia in the year 2009 as an alternative for gas expansion, allowing companies to reach greater coverage in places where for reasons of cost, distance and demand are not easily accessible should be highlighted.

Supply Plan in Colombia

As a result of the debate around the future of natural gas supply in Colombia, the Unit for Mining and Energy Planning -UPME- is conducting a study called “The Supply Plan for the Supply and Transportation of Natural Gas in Colombia.”

Some initial conclusions of the study allow UPME to ratify that the most viable alternative of natural gas supply for Colombia is import via gas pipeline from Venezuela. Additionally, the technical evaluation of the study informs that until 2014 there should be no transportation difficulties that may not be operationally remedied. 

Worldwide general information

The report describes that as a consequence of the worldwide economic crisis, the outlook for natural gas showed a decrease in the last year, and in consumption of the majority of fuels, except for hydroelectricity which showed a slight increase. 

Although in 2009, the price of LNG had the smallest decrease regarding 2008, international trade of this product was one of the few that showed growth during the last year.

On the other hand, GNV has had a worldwide boom that should be highlighted given that in the last decade this fuel showed an average annual variation of 27%. In 2009 1.6 million vehicles were converted to GNV in the world, of which 44%, meaning 666,000 vehicles, remain in Iran. 

Natural gas figures in South America

According to the report, the natural gas market in South America is divided into developed and emerging markets. The first group includes Argentina, Brazil and Colombia; while the second group includes Bolivia, Chile and Peru.

Of the developed markets, the report highlights Argentina, which by the end of 2009 showed a decrease of 31% in its reserves compared to five years ago. Notwithstanding having decreased average residential consumption of natural gas by 5% in that country in the last three years, it is the largest average consumption per user in the region. 

On their part, Brazil is positioning itself as one of the areas with the highest hydrocarbons reserves growth in the world. The monthly home consumption per user is the lowest in the entire region, as a result of the elevated price of this fuel; highest in South America.

Regarding emerging markets, the report states that Bolivia is a country that mainly exports its natural gas and that over the past year it has begun to develop its internal consumption, boosting users and GNV conversions, as well as service stations. Natural gas exports destined to Argentina from this country grew from 8% in 2008 to 17% in 2009.

The report also states that the shortage of natural gas in Chile has led to an unsuccessful GNV, but this situation has been resolved through the supply of LNG. Prices of the final user in this country are the highest in the region as a result of the importation tariffs set for natural gas.

Finally, the electric sector in Peru is currently reaching a 46% natural gas consumption, which is a reduction compared to four years ago. The GNV market is in full development with an average yearly growth of 145%.

Natural Gas around the World

In the world stage, the report analyzes the behavior of natural gas throughout the different regions. The Middle East is the region with the highest number of gas reserves in the world, reaching 41% of total reserves.

The Middle East is followed by Europe and Eurasia, which is considered as the second in the world in terms of natural gas reserves, reaching 2,228 Tcf (Tera cubic feet), which translate into 33.7% del of the world’s total.

Likewise, the report highlights the fact that with a natural gas production of 32.6% and a 36% consumption, Europe and Eurasia occupy first place in the world in production and consumption.

Asia, on its part, is the third region in the world with the highest number of natural gas reserves representing 574 Tcf. Pacific Asia holds 8.7% of the world’s reserves, 14.7% of production and 17% of consumption.

Regarding Africa, the analysis highlights Egypt as the country with the highest figures in natural gas consumption. This region experienced an average 9% yearly growth over the past 10 years. The report also mentions that the natural gas reserves in North America represent 5% of the world’s reserves. It is also the second one in production and consumption.

Lastly, according to the report developed by Promigas, South and Central America has 4.3% of the world’s reserves, represented by 285 Tcf, and it holds 5.1% of the natural gas production. Argentina is the region’s country with the greatest percentage in production.