Canacol Energy Ltd. negotiates new gas sales contracts, initiates private gas pipeline
Further to its Nov. 10 announcement of a new transportation agreement with Promigas S.A. to ship 100 MMscfpd of new gas production, the corporation has negotiated four new take or pay gas sales contracts totaling 100 MMscfpd with existing and new thermoelectric, refining, industrial and commercial customers located in Cartagena and Baranquilla.
The contracts all commence in December 2018, have a term of between five and 10 years, and are with large, established offtakers. The pricing of these new contracts, combined with the corporation’s current multi‐year take or pay gas contracts, and the private pipeline sales as described below, results in an average contract price of approximately $ 5.00/mcf for the anticipated 230 MMscfpd of production in December 2018.
A Special Purpose Vehicle (“SPV”) has been formed to build a new private gas pipeline connecting the Corporation’s gas facility located at Jobo to the Promigas operated pipeline at Sincelejo. The private pipeline will consist of approximately 80 kilometers of flowlines and two compression stations, and is designed to transport 40 MMscfpd of Canacol’s gas to new and existing customers located in Cartagena under take or pay contracts at existing prices.
Surveying and permitting for the new pipeline is underway, with first gas transportation anticipated in December 2017.
The SPV is anticipated to raise approximately $ 50 million in a combination of equity and debt, outside of Canacol, to construct and operate the pipeline.
- Gasum powers Equinor's platform supply vessel with bio-LNG
- ADNOC deploys pioneering AI-enabled process optimization technology
- Mexico Pacific announces long-term LNG SPA with POSCO International
- ONEOK to acquire Medallion and controlling interest in EnLink for $5.9 B
- Golar LNG signs EPC deal for $2.2-B MK II FLNG conversion project
Comments