Image credit: Frontera Energy.

Frontera Energy Corporation on 22 July, has announced a significant development in its energy portfolio. Its subsidiary, Sociedad Portuaria Puerto Bahía S.A. ("Puerto Bahía"), has entered into a Framework Collaboration Agreement with Gasco Soluciones Logísticas y Energéticas S.A.S. ("GASCO"). This Agreement formalizes their joint initiative to develop a liquefied petroleum gas ("LPG") project at Puerto Bahía’s advanced port terminal in the Bay of Cartagena, Colombia.

The Agreement details the construction and operation of a 20,400-ton LPG refrigerated storage facility, with an estimated total cost ranging from $50 million to $60 million. The financial contributions will be shared between Puerto Bahía and Gasco, with Puerto Bahía’s contributions primarily in-kind. The collaboration will involve the establishment of a joint venture responsible for the development, construction, and operation of the LPG facilities. Future phases may be added to meet increasing LPG demand.

According to the Colombian Mining and Energy Planning Unit ("UPME"), Colombia’s current annual LPG consumption stands at approximately 700,000 tons, with a projected requirement of 1 million tons by 2031. The new facility is expected to initially supply 160,000 tons per year, with capacity increasing to 340,000 tons by 2030. It will also accommodate two Very Large Gas Carriers ("VLGC") per month. This project marks a major investment in Colombia's energy infrastructure, addressing the country’s growing energy needs.