Celsia issues Colombia gas warning

Colombia's Celsia says plans to expand its thermoelectric capacity are being stymied by a dearth of natural gas in the Andean country. 

The Medellín-based firm's gas-fired power portfolio is currently limited to the 200MW El Tesorito plant in Córdoba department, a joint venture with Canacol and Proeléctrica.

"We have the possibility to expand El Tesorito and we have a license for another plant that is also 200MW, but we don't have the gas," Celsia CEO Ricardo Sierra told investors in a quarterly conference call. 

According to data published by natural gas market administrator BMC, Colombia faces a deficit of 76.5BBTU/d (billion British thermal units a day) in 2025 and 189.5BBTU/d in 2026.

Such a scenario could translate into an electricity deficit, particularly in times of El Niño-induced drought when the country relies on backup thermoelectric plants to meet demand. 

"We are leaving no stone unturned to try to find a system that allows us to have gas during times of scarcity and to have [the new] project ready to participate in a reliability charge auction," Sierra said. 

"It [the auction] is something that the country desperately needs because not only will we not have gas, we won't have kilowatts," he added. 

On Monday, Colombian gas and power sector regulator Creg announced plans for a new auction for firm energy after a February offering fell short of demand projections. 

It did not say when the auction would be held nor which technologies would participate. 

Meanwhile, Sierra said Celsia had yet to determine the future of four wind projects in La Guajira department with proposed capacity of 320MW. 

In February, the company said it could sell the developments amid delays caused by licensing bottlenecks. 

"We continue advancing our licensing and we're ready for any eventuality," Sierra said. "That could involve selling or finding new partners. It's taking a bit longer than we'd hoped.” 

"But within nine to 12 months we will have a lot more clarity surrounding La Guajira," he added.

Sierra also said he hoped a proposed overhaul of Colombia's public services law would not turn away new investment in the power sector. 

"Energy is progress and without kilowatts there is no progress," he said. "I hope they don't change the fundamentals that have allowed [electricity] coverage to reach levels that were previously unimaginable and that prices [remain] competitive on a Latin America level."