Promigas Pipeline

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This company is a transporter of natural gas in Colombia's Atlantic Coast. The company transported roughly 320mmscfd via a 910km trunkline in 1995, when it handled 100% of the gas consumed on Colombia's Atlantic Coast. The company's main gas pipelines are Ballena-Barranquilla-Cartagena (595km), Cartegena-Sincelejo-Jobo (138km), Guepaje-Sincelejo (55km), and Sincelejo-Monteria (35km). Promigas was created as a mixed company. The company fully became private in January 1996 when the state-owned oil company, Ecopetrol, sold its 38.7% share of Promigas to Enron for $100.5 million. After this transaction, Promigas became a fully private company. Other owners of Promigas are Corporacion Financiera del Valle (12.38%), Corporacion Financiera Colombiano (9.94%), and International Financial Corporation (9.22%). In 1996, Promigas invested $57.50 million in the construction of a 25km loop to its main line, the acquisition of a 192 km pipeline and an on-going investment. The project will also open up new areas of Central Colombia to gas distribution. The IFC partially financed the construction of Promigas' gas pipeline in many tranches. As of 2005, Enron was in the midst of liquidating its operations and distributing its assets to its creditors. As of December 2009, revenue for the pipeline came from the following arrangements. The capacity contracted was either take-or-pay (for generators only) or under a fixed/variable arrangement, whereby the tariff was typically 90% fixed/10% variable for industrial, CNG and distribution companies and 50% fixed/50% variable for the thermoelectric generators. The average length of these contracts was one to two years, and the expectation is that these contracts were generally renewed. The tariff structure in place minimized the sensitivity of revenues to volume transported because the majority of the revenue came from the fixed component of the tariffs. As of December 2009, the Promigas Pipeline had a length of 1,271 miles (2045.5) and transported natural gas from fields in the region of La Guajira to the Jobo terminal station in the Department of Sucre. In November 2016, Promigas announced the expansion of its network. The Jobo-Cartagena Pipeline project envisaged the expansion of the 866-km natural gas pipeline starting in the state of Bolívar and passing through the states of Sucre and Atlantíco. The pipeline capacity was expected to reach 190 million cubic feet per day. The project included twinning of the existing Jobo to Sincelejo gas pipeline, the installation of additional compression on the existing Sincelejo to Cartagena pipeline, and the construction of a new gas pipeline between Cartagena and Barranquilla. The US$ 200 million expansion works were set to be undertaken by Conacol and fully funded by Promigas. Construction works started in November 2016, and commercial operations on the new strech was expected to commence by December 2018. Contract is extendable for an additional 20 years.