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Colombia Relaunches $700m Pacific LNG Tender

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Colombia has relaunched a tender for its long-awaited Pacific liquefied natural gas (LNG) import project, after aborting an initial bidding process in October 2021 due to a lack of interest.

Draft terms of reference published by energy ministry planning unit UPME call for proposals to develop and operate LNG storage, regasification, and transport infrastructure in the western Colombian department of Valle del Cauca.

The documents are available for public consultation until June 30. They can be seen here.

UPME says the proposed new guidelines included mechanisms to encourage “open and competitive” bidding, modifications to rules related to the remuneration of service providers and new obligations during the construction phase, among other changes.

No timeframe was given for the bidding process, but UPME maintains a construction deadline of 58 months after the contract is awarded.

The project includes a regasification plant and a storage unit capable of holding up to 200,000M3. A 120km pipeline would transport up to 23,400Mf3/d (million cubic feet per day) of gas from the facilities to a terminal in Yumbo, on the northern outskirts of Cali.

UPME has said it expects the proposed infrastructure to require investment of $700mn.

During the last tender process, potential investors and energy stakeholders expressed doubt over who would bear the cost of the project and how prices would be impacted.

Some companies said they would only consider a bid if greater steps were taken to mitigate risks, such as the threat of delays, especially related to the pipeline.

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