Colombia Prepares for Increased LNG Demand Amid El Niño Forecast
Colombia's liquefied natural gas (LNG) imports are set to rise significantly as the country braces for an El Niño event. The anticipated dry conditions will compel thermal generators to operate at full capacity, increasing energy prices and leading to possible power shortages.
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Colombia is expected to ramp up LNG imports to about 475 million cubic feet per day in August as thermal plants prepare for an El Niño, which is forecasted to affect the region from November to May. Currently, the country imports around 210 million cubic feet daily through its only terminal, SPEC, primarily for household and industrial use.
The country's reliance on hydropower, which constitutes two-thirds of its electricity generation, makes it vulnerable to the dry conditions associated with El Niño. Current reservoir levels are at approximately 60%, necessitating a rise above 80% to ensure stability during the dry season.
New projects are set to begin operations in September, aimed at addressing the growing gas demand. The expected increase in LNG imports may lead to higher energy prices, impacting the overall energy market.
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