Black & Veatch, a U.S.-based liquefied natural gas (LNG) infrastructure solutions company, has completed a feasibility study for Colombia’s planned LNG regasification terminal and power plant.
This development is seen as a wrap of the first stage of the Andes Energy Terminal (AET) , described as a multi-year LNG buildout, located near the port city of Buenaventura on Colombia’s Pacific coast. The project is said to be developed privately by the AET sponsor group.
According to Andes Energy Terminal’s Chairman Manuel Tenorio , the natural gas deficit Colombia is expected to face in 2025 means that the country will have to import most of its gas needs, which is why the regasification plant in the Pacific coast is “an undeniable need” .
“The solutions of imported gas from Venezuela or the exploitation of offshore fields in the Colombian Caribbean are not practical or realistic solutions to this crisis. Unless LNG import and regasification capacity is expanded in the near term with new infrastructure in Buenaventura, the Colombian industry and households, particularly in the southwest, will suffer the consequences of this looming shortage of gas,” explained Tenorio.
The AET project comprises an LNG terminal for receiving imported LNG, a land-based regasification plant, an LNG truck loading terminal, a power plant, and associated gas and electrical transmission infrastructure.
The feasibility study for the Andes Energy Terminal kicked off with a site assessment focused on the landscape of the area, regulatory restrictions, and accessibility. Design and financial estimates and planning were analyzed next, while the last stage examined climate resilience and mitigation, as well as financial modeling and analysis.
The elements assessed included site suitability, project design requirements, capital and operating costs, financial viability, financing options, climate resilience, and implementation and construction plans.
Laszlo von Lazar , President of Black & Veatch’s Energy and Process Industries business, commented: “Black & Veatch’s more than 45 years of experience in developing projects in Latin America and over 100 years of experience in critical infrastructure aligned our team perfectly to assess the Andes Energy Terminal (AET).
“Working with the AET team to strategize around the project and its capacity to serve southwest and central Colombia’s energy needs displays our global commitment to delivering safe and reliable energy.”
The U.S. player recently won a contract for engineering, procurement, and construction (EPC) of the floating LNG production unit (FLNG) for the Canada LNG project together with Samsung Heavy Industries (SHI) .
This was followed by a notice to proceed (NTP) in April. Early works for the project are scheduled to start this month, with the final investment decision (FID) expected in mid-2024.