LatAmOil: Colombia's green gamble: LNG imports surge amid Petro’s climate push

The Andean nation is witnessing a shift in its energy landscape as declining gas reserves coincide with President Gustavo Petro’s refusal to issue new drilling contracts, EnergiesNet.com reported on January 14. The policy has propelled Colombia towards importing liquefied natural gas (LNG), which critics argue undermines the government’s ambitious climate goals.

Near Cartagena, along the Caribbean coastline, massive LNG tankers are arriving with increasing frequency to offload cargoes. These shipments, largely from the US and Trinidad and Tobago, are essential to offset Colombia’s declining domestic gas production. However, liquefying and transporting LNG significantly raises its carbon footprint compared to locally produced gas, exacerbating the environmental challenges Colombia aims to address.

President Petro’s administration has positioned Colombia as a global leader in climate action, even pledging at a United Nations summit in Dubai to phase out fossil fuels. Yet the strategy has drawn sharp criticism at home. Analysts, including Camilo Prieto of Javeriana University, argue that relying on imported LNG with a higher environmental cost contradicts the president's sustainability objectives.

Officials in Bogotá, however, maintain that Colombia is on track to navigate this transition. Mines and Energy Minister Andrés Camacho pointed to aggressive plans for renewable energy expansion, including solar and wind, as key to reducing dependency on fossil fuels. "The energy transition is about decarbonising the economy," Camacho said, underscoring the administration’s long-term vision.

Nevertheless, the challenges are immediate. Colombia’s commodities exchange predicts a 5% shortfall in domestic gas supply this year, rising to 17% by 2026. While state-owned Ecopetrol SA aims to mitigate the need for LNG imports by freeing up gas for homes and businesses, critics highlight the trade-offs, such as increased reliance on diesel, which produces more carbon emissions than gas.

Colombia’s pivot away from fossil fuels is not without economic consequences. Oil and coal, which account for half of the country’s exports, are key revenue sources. Abandoning these could trigger a seismic shift in the national economy. Despite this, Petro’s leadership has gained global attention, with some lauding his bold approach to climate change as a model for others.

In the meantime, LNG shipments continue to rise. Last year, Colombia imported over 2mn tonnes of LNG, with nearly 60% sourced from the US. These imports have primarily supported power plants amid drought-induced hydroelectric shortages but are increasingly supplying homes and factories.

Looking forward, Colombia’s renewable energy capacity must expand rapidly to close the gap. Yet, according to BloombergNEF, doubling solar capacity to meet this year’s gas demand is unlikely before 2028. The energy transition, though promising, appears fraught with near-term difficulties as Colombia navigates this complex path.

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