Energy
Monday, April 15th, 2024 3:35 pm EDT
Key Points
- NG Energy International Corp. has expanded its long-term natural gas sales agreements for the Maria Conchita block, adding commitments with GEAM Grupo Energetico de las Americas SAS ESP and Empresas Publicas de Medellin ESP to its existing agreements with Vanti SA ESP, Gases del Caribe SA ESP, and Gases del Occidente SA ESP.
- The company has now sold approximately 14.8 MMcf/d of production under these long-term contracts for a period of three to five years, while the remaining production will be sold into the spot market on an interruptible basis. Pricing in the Caribbean coast, particularly in the Ballena section, was $8.87 per MMBtu in March, up 36.5% from the same time last year due to increased demand for natural gas amidst economic growth and supply challenges during El Nino.
- CEO Brian Paes-Braga highlighted the company’s role as a critical and reliable natural gas supplier in meeting the growing demand in Colombia. He emphasized the importance of re-scoping Maria Conchita to bring additional energy to the Caribbean region and support the country’s energy transition and economic growth.
NG Energy International Corp., further to the company’s press release dated Dec. 4, 2023, has signed additional long-term agreements for natural gas sales from the Maria Conchita block, expanding on its previous commitments with Vanti SA ESP, Gases del Caribe SA ESP and Gases del Occidente SA ESP, and entering into additional commitments with GEAM Grupo Energetico de las Americas SAS ESP and Empresas Publicas de Medellin ESP.
With these agreements in place, the company has now sold approximately 14.8 MMcf/d (million cubic feet per day) of production under long-term natural gas sales contracts for a period of three to five years, with the balance of production from the Maria Conchita block being sold into the spot market on an interruptible basis. Pricing in the Caribbean coast, specifically in the Ballena section, for the month of March was $8.87 (U.s.) per MMBtu (million British thermal unit). Price for the region is up 36.5% from the same time last year2, due to the overall economic growth of the region, the demand for natural gas outpacing the supply during this time of El Nino, and the unique characteristics of natural gas as a critical energy source for Colombia.
Brian Paes-Braga, CEO of NGE, commented “We are experiencing continued unprecedented demand for our natural gas throughout the ramp-up of production at Maria Conchita and are proud to be a critical and reliable solution in this environment for our highly valued customers. Given the continued demand for natural gas in Colombia as a critical transition fuel, re-scoping of Maria Conchita, after 3 DSTs tested a combined 65 MMcf/d across three zones last year at Aruchara-3, continues to be a top priority, as we endeavour to bring additional and much needed energy to the Caribbean region of Colombia.”
About NG Energy International Corp.
NG Energy International Corp. is a natural gas exploration and production company with operations in Colombia. The Company is on a mission to discover, delineate and develop meaningful natural gas fields in developing counties to support energy transition and economic growth. In Colombia, the Company is executing on this mission with a rapidly growing production base that is being delivered to the premium priced Colombian market. NGE’s team has extensive technical expertise and a proven track record of building companies and creating value in South America.
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