Pacific Rubiales signs deal for Colombian floating LNG vessel

Pacific Rubiales Energy, through its subsidiary Pacific Stratus Energy Colombia Corporation (PSE), has entered into deal with Belgium-based Exmar to build, operate and maintain a floating liquefaction regasification and storage unit (FLRSU) on the Colombian Caribbean coast.

The FLRSU, expected to start operations in 2014, will have a storage capacity of 14,000m3 of LNG.

Pacific Stratus will also develop an 88km, 18 inch diameter pipeline from its La Creciente Field to the Caribbean coast which will source gas from the field with an initial design transportation capacity of 100MMcf/d.

Pacific Rubiales chief executive officer Ronald Pantin said the agreement opens new markets and fast-tracks monetisation of the company’s extensive natural gas reserves.

"This leverages the company’s strategy to explore and develop its large gas resources in northern Colombia, and also reinforces the company’s view that Colombia has enough gas resources to become a reliable LNG supplier for the region," added Pantin.

As per the agreement, PSE will also have an exclusive right to supply and liquefy about 69.5 million cubic feet per day (MMcf/d) over a 15-year period, under a tolling structure.

Pacific Rubiales intends to initially target Central America and the Caribbean markets, to replace fuel oil and diesel currently used for power generation through the project.

The company said it will also explore potential industrial and residential market opportunities for natural gas in these countries, allocating new incentives to explore and develop the undiscovered natural gas resources in Colombia.