Charting the course: Colombia’s gas and power market analysis amid uncertainty

Colombia is navigating a pivotal shift in its natural gas landscape with growing demand and declining domestic production. Industrial consumption in the Centro region is driving sustained growth, while the Costa region faces a downturn due to weakening power sector demand. At the same time, the country’s power generation mix remains vulnerable to “El Niño” effects. Can domestic projects like Sirius and KGG overcome economic and regulatory hurdles to meet demand as Colombia seeks to reduce LNG dependence? Will onshore YTF resources offset imports, or will fiscal pressures limit their viability? With key pipelines nearing capacity, how will bidirectional upgrades and infrastructure expansion ensure reliable supply, particularly as Llanos Basin production declines? Our latest report explores these critical questions, the evolving supply/demand balance, and what they mean for the future of Colombia’s energy sector.