(Bloomberg) -- Colombia’s energy minister says the South American nation will have no problems getting natural gas next year — offering reassurances that fears of an energy crunch won’t materialize.
“We have all the guarantees that in 2025 we won’t have any difficulties regarding gas supply,” Mines and Energy Minister Andrés Camacho said Tuesday in a press conference in Bogotá.
Colombia’s biggest companies have been bracing for high energy costs as dwindling natural gas production forces the country to turn to costly imports to avoid shortfalls. The country relies on gas to run its power plants and factories, and provide a majority of homeowners with fuel for cooking.
The minister’s comments come days after Colombia’s commodities exchange estimated a 5% shortfall in 2025, which could be met with gas from the secondary market. The exchange said another dry spell could widen the deficit to 7% next year — a level that can’t be met by currently available sources — and it forecast the gap between supply and demand will widen even further in 2026, requiring additional gas imports.
Businesses and energy experts have warned that imported gas may mean higher prices for the fuel, which could make companies less competitive and ultimately force some to shut down. Minister Camacho said he doesn’t expect a shortfall of the fuel in 2026 either, given domestic efforts to find new gas and the government’s push to increase renewable energy sources that should replace gas demand.
©2024 Bloomberg L.P.