Gases del Norte del Valle

active

Gases del Norte del Valle was awarded the contract to build, own and operate the gas distribution system of the northern Valle del Cauca in mid-1997. Construction works began immediately and commercial operation started in mid-1998. In the 1997-2000 period, the company invested a total of US$ 8.3 million in its network. Gases del Norte del Valle is a joint-venture of Andean Gas (33.76%), Gas Natural (23.68%), Gasoriente (18.24%), Promigas (17.77%), Gases del Caribe (3.27%) and Surtigas (3.27%). The company has a 17-year exclusivity contract, after which time the market will be opened for competition. As of December 31, 2009, Gases de Occidente had approximately 672,500 customers and distributed approximately 50 mmcfd of natural gas in 2009. Promigas owns 89.90% of Gases de Occidente. AEI controlled 46.87% of Gases de Occidente through Promigas. Gases de Occidente holds an exclusive long-term renewable concession from the Colombian MME. Gases de Occidente’s concession agreement provides for exclusive natural gas distribution rights within the concession area until 2014, at which time the regulator will change from MME to CREG, and for non-exclusive gas distribution rights within the concession area until 2047. Since 1994, a concession has no longer been required to distribute natural gas in Colombia. In 2014, the contract will change from a an exclusive concession to a competitive utility.