NG Energy eyeing Colombia gas production ramp-up

Canada's NG Energy plans to raise natural gas output from its Colombian operations more than sixfold over the next 18 months, the company's chief financial officer told BNamericas. 

The Toronto-listed company is aiming to produce 130Mf3/d (million cubic feet a day) by the end of 2025, up from a current level of around 20Mf3/d. 

"We are not naive to the enormity of the task but with great relationships in the country, great partners and continued hard work, we are extremely confident we will meet this objective," CFO Jorge Fonseca said in a telephone interview. 

The company is currently producing 20Mf3/d from its María Conchita block in La Guajira department and seeks to raise output from the area to 30Mf3/d by the first quarter next year. 

But the "crown jewel" of the company's operations, according to Fonseca, is the Sinu-9 area in Córdoba department.

"At Sinu-9 we have two wells, Brujo and Mágico, and we are weeks away from completing a major infrastructure project, which will connect these wells to the Jobo [gas hub] and the Promigas pipeline," he said.  

Sinu-9 is on track to come on stream on August 15, initially producing 10Mf3/d before building up to existing transport capacity of 30Mf3/d. A 10Mf3/d capacity expansion is expected to be completed by November, allowing production to reach 40Mf3/d

"And with an increase from María Conchita in the first quarter of next year, our total company production will go up to 70Mf3/d," Fonseca said. "That will make us, I believe, a very important company in Colombia."

The bulk of the expected production ramp-up in 2025 will come from phase two of the Sinu-9 project, which envisages the construction of two additional pipelines and the drilling of at least three exploration wells. 

"I believe NG is probably the only good news in the industry right now," Fonseca said. "We are the only ones that can put new gas in the market in the next 36 months and help mitigate the supply issue and the high prices."

The first part of the interview with Fonseca can be seen here. The second part will be published in the coming days.