Frontera Energy and Gasco to build LPG project in Colombia

CARTAGENA, July 25, 2024 – Frontera Energy, via subsidiary Puerto Bahía, has entered into an agreement with Gasco to develop an LPG project in Colombia, the Canadian player said late last week.

The project, set to come on line in 2027, involves the development and operation of a port terminal capable of importing and storing more than 20,000 tonnes of LPG. Additional phases may be added to capture larger volumes, depending on the market demand for LPG.

The joint project entails an estimated investment of CAD 50 million-60 million (USD 36.2-43.4 million).

The facility will be built at Puerto Bahía’s state-of-the-art liquids and dry cargo port terminal strategically located in the Bay of Cartagena.

Frontera CEO Orlando Cabrales said the project would “capitalise on increasing LPG supply deficits in the Colombian market at a time when the LPG market is expected to grow at 4% per year.”

“Leveraging Puerto Bahia’s infrastructure and strategic location and GASCO’s experience and current domestic LPG distribution market share, the LPG project aims to be Colombia’s lowest cost importer and will capture a significant share of this market over time.”

Calgary-based Frontera focuses on the exploration and production of oil and gas in Latin America.

Chile’s Gasco is present in Colombia as a key player in LPG storage and distribution.

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