The Colombian government has acknowledged a natural gas deficit, requiring imports since last December to meet essential demand. This has led to higher prices for imported gas, passed on to users via tariff hikes. Officials are announcing measures to curb the effects.
Colombia is grappling with an escalating natural gas deficit, now acknowledged by the government, which has driven imports since December 2024 to ensure basic supply. Naturgas President Luz Stella Murgas stated, “the firm gas deficit will continue to increase in the coming years if we do not accelerate the new projects we have identified… We are operating at the limit, with no margin for contingencies.”
Fedesarrollo forecasts the deficit worsening over the next eight years, projecting costs of 28 trillion pesos by 2033, stemming from insufficient exploration, declining proven reserves, and growing reliance on imports. This impacts not only household and business tariffs but also overall economic competitiveness. The Colombian Mercantile Exchange predicts the supply-demand imbalance could hit 20% in 2026 and rise to 50% by 2029, raising costs for industry, commerce, and homes amid gas's role in the energy transition.
Imported gas prices exceed domestic ones, triggering tariff rises. Earlier this year, interior region tariffs increased 20% to 36%, despite former Minister Camacho's denials attributing issues to speculation. With renewed contracts incorporating imported gas, new hikes from December include 35% for vehicular gas, 28% for industry, and a 14% average for household use, softened by a 13.5% peso revaluation.
Mines and Energy Minister Edwin Palma has issued a decree and resolution to cap increases and ensure fair prices, plus 20 urgent and structural measures against speculative practices. Yet Ecopetrol, producing 70% of national gas, sells at market rates. Delays in Creg's Resolution 102022 forced spot market purchases at premium prices. Future supply requires expanding regasification capacity at the Spec terminal in Barú, Cartagena, which is currently at full capacity. President Petro questions private import dominance, but these arose from initiatives like the Coastal Thermal Group to meet firm energy offers.
