LatAmOil: Ecuador funds new transmission system for oil sector

The government of Ecuador will make funds available to private companies for the construction of $1.9bn worth of new energy facilities, including a new transmission system for the oil sector. The funds will enable companies to build and operate new power plants, Energy Minister Juan Carlos Bermeo said last week.

The government is seeking investors for several major projects, Bermeo said. Among these are a new 400-MW natural gas-burning thermal power plant (TPP) worth $600mn and a 290-km transmission line that will link oil industry facilities to the national grid, he said. The new TPP and cable are expected to begin operating between 2024 and 2026, he added.

Ecuador’s government is currently making a push to expand the role of private investors in key sectors of the economy, in line with the policies favoured by President Guillermo Lasso, who took office in May. This includes the hydrocarbon industry, as crude oil is traditionally the South American country’s biggest export.