Petrobras Announces ‘Huge’ Gas Discovery In Colombia

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Petroleum giant Petrobras announced Thursday the discovery of natural gas deposits in Colombia that could double the South American country's known reserves even as it seeks to transition away from hydrocarbons.

The discovery, the largest since the 1990s, comes as Colombia faces pressure on its energy supplies, derived mainly from hydroelectric power, amid a severe drought impacting much of South America.

But it also coincides with a government drive to stop extracting fossil fuels as it transitions to a low-carbon economy.

The "huge discovery" of some six trillion cubic feet of natural gas "has the potential to double Colombia's reserves," Petrobras general manager for exploration, Rogerio Soares, said at an oil and gas summit in Cartagena in Colombia's north.

The deposits are comparable in size to those of the Cuchupa oil and gas field that has supplied gas to Colombia for the last 45 years.

Brazil's Petrobras has a 44.4 percent stake in a gas exploration consortium in the Colombian Caribbean, with state company Ecopetrol holding the other 55.6 percent.

The announcement came just a day after the government of Colombia's first leftist president, Gustavo Petro, announced plans to seek $40 billion in investment for its green energy transition plan.

Petro last year halted all new concessions for oil, coal and gas exploration towards Colombia's goal of becoming a net-zero emitter of greenhouse gases by 2050.

The president's decision to shift away from fossil fuel extraction has caused controversy in the Latin American nation, where oil and gas account for 52 percent of exports.

The opposition and some trade unions have called for a more gradual energy transition, arguing a radical shift could tip the economy into recession.

According to figures from Naturgas, an association of production, transportation and distribution companies, Colombia will have a gas deficit equivalent to 7.5 percent of demand by 2025 and 16 percent by 2026.

To make up the shortfall, Colombia increased gas imports by 2,500 percent between 2022 and 2023.

Natural gas accounts for 25 to 30 percent of national energy consumption, according to industry figures.

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