The Ministry of Mines and Energy, led by Edwin Palma, published a draft decree that introduces changes to the regulatory framework of the natural gas sector to face risks of price speculation and ensure supply. The resolution establishes measures to promote the supply of natural gas, define the formation of prices in a possible shortage and clarify the scope of contracts and infrastructure linked to the supply.
The new regulations, with prior consultation with the Superintendency of Public Services, modify key articles of Decree 1073 of 2015. Among the most relevant changes, The text defines “Essential Demand” to prioritize sectors such as residential users and small businesses, and reconfigures the figure of the “Natural Gas Marketer” in direct import scenarios.
The text specifies that, during situations of tight supply, only certain demands – such as that of homes, small businesses and compression stations – will be considered essential due to regulatory prioritization. Furthermore, by incorporating regasification infrastructure into the Natural Gas Supply Plan, this will become an extension of the assets of the National Transportation System (SNT), without implying free access or altering the rights or obligations of the operators.
And he points out: “The purpose of this decree is to establish guidelines aimed at promoting the supply of natural gas in order to maintain the continuity, reliability and security of supply; as well as adopt provisions for the formation of prices in the wholesale natural gas market in situations of tight supply of nationally produced natural gas.”
At the same time, it defines new concepts applicable to the sector. Regarding the quality of the marketers, the ministry stated: “When a natural gas marketer directly carries out natural gas import activities to serve its users, it will simultaneously hold the status of Imported Gas Marketer,” according to the text of the decree.
Regarding firm contracts subject to conditions, it is established that an agreement meets this condition when the producer has declared and marketed reserves, or if the operating agent put import infrastructure into service.
Essential demand is limited in cases of supply alert exclusively to the following segments: compression stations of the National Natural Gas Transportation System (SNT), residential users and small commercial users, as well as CNG demand.
According to the new regulation: “When the Natural Gas Supply Index shows that the defined value has been reached for the Situation of Tightness in Supply to occur, only the consumption sectors of literals i), ii) and iii) of this definition will be part of the Essential Demand.”
Regarding regasification infrastructure, the decree clarifies its role within the national system: “In the event that said regasification infrastructure is adopted by the Natural Gas Supply Plan, it will be considered an extension of the SNT assets; The previous consideration should not imply free access to the aforementioned infrastructure, with the objective of ensuring the service and capacity committed in the Natural Gas Supply Plan; nor the exercise of rights or obligations inherent to the assets of the SNT.”
The Ministry of Mines and Energy reported that the Mining-Energy Planning Unit (UPME) concluded the technical evaluation of the LNG storage and regasification infrastructure project in La Guajira with connection to the National Transportation System (SNT), contemplated within the Natural Gas Supply Plan 2023-2032.
The evaluation determined that the proposal presented meets the technical criteria required for its development as an IPAT Project (Investments in Priority Projects of the Natural Gas Supply Plan), including location, capacity and date of start-up.
The initiative contemplates a Floating Storage and Regasification Unit (FSRU) off the coast of La Guajira, infrastructure that will allow the storage of nearly 147,835 cubic meters of Liquefied Natural Gas (LNG). and regasify up to 250,000,000 cubic feet per day for incorporation into the National Transportation System.
