Ecopetrol Slams the Brakes: 13 Companies Hit with Vehicle Gas Supply Cuts
Ecopetrol Limits Natural Gas Supply to 13 Companies Amid Water Reservoir Shortage
The measure, said the state oil company, is to guarantee the production of electrical energy in the country.
Ecopetrol announced that due to the reduction in the level of water reservoirs due to the lack of rain in several regions of the country and to prioritize the production of thermal energy to avoid possible rationing, it is limiting the supply of natural gas for vehicles to 13 companies.
This is a mandatory measure, as established by Decision 186 of 2020 of the CREG (Energy and Gas Regulatory Commission), which regulates the supply of natural gas to the wholesale market in Colombia.
Affected Companies
Companies that have signed conditional contracts with Epetrol receive 6.2 Giga BTU per day, but due to the situation the state oil company will be able to give them 3.4 Giga BTU per day to prevent them from having a shortage of supply.
With the decision, the 13 companies affected will be able to seek fuel supply in the national energy market to avoid impacts on their operations.
Unaffected Companies
Companies that signed Gas Purchase Option Contracts (OCG) will not be affected, which corresponds to those who have insurance or special protection in case of shortage situations like the current one.
Energy Security
Before the contingency, Ecopetrol had been supplying 46.6 GBTUD of gas to 13 companies with uninsured CFC contracts, and committed 32.1 GBTUD to comply with OCG insurance contracts, in the face of gas shortages.
However, in order to guarantee the country’s energy security, the state company decided to reduce the use of gas in its operations to give priority to gas supply in the regions in accordance with the regulations that apply in these conditions.
Monitoring the Situation
Ecopetrol also explained that the “probable shortage” condition that has been happening in recent days in Colombia occurs when the stock market price is equal to or greater than 95% of the shortage price.
However, the company said it will continue to monitor the situation permanently to guarantee fuel supply for national demand, according to its capabilities.