Intern: Yiniva Camargo Caicedo Mentor: PhD.

Sunil Dhingra

Project: Assessment of biomass resources potential as an energy source in Colombia

Objective 1. Describe the energy sources currently used in Colombia

Tasks:
1.1. Identify databases and resources to search of literature about the energy sources
used in Colombia
1.2. Read and analyze of literature to evaluate reliability and relevance of the
information
1.3. Write a short report about the energy sources currently used in Colombia
_______________________________________________________________________

A review of the current energy resources in Colombia

Yiniva Camargo-Caicedo1

Faculty of Environmental Sciences. Technological University of Pereira, Calle 27 No. 10-02, Pereira-
Risaralda, Colombia

Abstract

This report presents an overview of Colombian energy resources, including statistics

conventional energy about coal, crude oil and natural gas production, in recent years, as
well as a brief description unconventional renewable energy, specifically hydro-power used
in electricity sector, and wind and solar energy operating in in non-interconnected zones.
Colombian policies for promoting the rational use of energy and no-conventional energies
and their targets have been established in National Development Plan 2014-2018 and Law
1715 of 2014 regulating the integration of unconventional renewable energies into the
national electricity system with the support of Renewable Energy Fund and Efficient
Energy Management.

1
Corresponding author. Tel.: +57 3012523474
E-mail address: yiniva.camargo@utp.edu.co (Y. Camargo-Caicedo).

1
Keywords: energy resources, conventional energy, policies, unconventional renewable
energy

1. Introduction

Colombia is located in the northwest part of South America and has an area 1,14 million
km² where live around of 42,8 million people, and up to 49.6% of the population is living
below the poverty line. The ethnic groups of the population are: mestizo (58%), White
European (20%), Mulatto (14%), Black African (4%) and Native American (1%). It is the
only South American country with coasts on both oceans (Pacific and Atlantic), which it is
a strategic position. The countries that border Colombia are: Venezuela (east), Brazil
(southeast), Peru (south), Ecuador (southwest) and Panama (west).

Colombia is divided into 32 departments and one capital district, Bogotá D.C, which is
treated as a department. Each department has a local government with a governor and
assembly directly elected to four-year terms. The geography of Colombia has six main
natural regions and each has its own unique characteristics: i) The Andes mountain region
shares borders with Ecuador and Venezuela; ii) The Pacific Coast region shares borders
with Panama and Ecuador; iii) The Caribbean coastal region shares borders with Venezuela
and Panama; iv)The Eastern Llanos shares a border with Venezuela; v) The Amazon
Rainforest region shares a border with Venezuela, Brazil, Peru and Ecuador, and vi) The
insular region includes all the islands of the country. Colombia's temperature changes with
the altitude, and it is different by region. The regions around the Andes are colder than the
coast, which is lower.

The most important rivers in Colombia are Magdalena and Cauca. The Magdalena River
divides the eastern and Center mountains. It makes a fertile valley. The Cauca River divides
the center mountain range and the western ridge, making another great valley. The Cauca is
really a part of the Magdalena. However, the two do not meet until a few miles before the
Magdalena goes into the Caribbean Sea.

Colombia is known for its coffee, coal, and emeralds. It is also the biggest supplier of
plantains to the United States and United Kingdom.

2. Conventional energy resources in Colombia

Colombia possesses significant reserves of coal, crude oil and natural gas as well as water
resources used for the electricity generation. These resources are distributed across the

2
country and their production, transportation and use has been challenging for the
infrastructure and facilities, the environment, the communities and national politics.

2.1 Coal
The most relevant mining activity in Colombia is coal mining sector, became fully
privatized in 2004 after the liquidation of Minercol Ltda., the state mining company.
Colombia is the largest coal producer in Latin America [1] and the 8th largest in the
worldwide with 6746 million tonnes of coal [2].

Its primary proven reserves are located in Cesar (54,7%) and Guajira (36,7%) departments,
followed by Cundinamarca (2,6%), Boyacá (2,8%) and Santander North (2,3%)
departments [3].

The chart below shows the total coal production in Colombia during the last five years,
with 89 million tonnes in 2016, which 48,6 million tonnes were produced in Cesar
department, 32,6 million tonnes in Guajira and the rest of the coal production
corresponding to 7,6 million tonnes was in Cundinamarca, Boyacá, Santander North,
Córdoba, Antioquia, Santander, Valle del Cauca, Cauca and Nariño departments (Fig. 1).

50000000 Total Coal Production, Ton

2012 2013 2014 2015 2016
45000000 89633469 86207279 88068833 87248382 89020547
40000000
35000000
30000000
25000000 2012
Ton

20000000 2013
15000000 2014
10000000 2015
5000000 2016
0

Fig. 1. Coal production in Colombia (Author's elaboration) [2]

The largest mines are „La Loma‟ located in Cesar department, exploited by Drummond
Ltda, a subsidiary of Drummond Inc. (USA), and „Cerrejon Zona Norte‟ located in Guajira,
operated by the joint venture BHP Billiton plc (UK)-Anglo American plc (UK)-Glencore
plc (UK-Switzerland Anglo–Swiss). Both mines are open pit mining and mainly produce
thermal coal. Despite this significant coal production, only 8% of installed electric power

3
capacity corresponds to coal thermal power plants and about 92% of it is exported to
countries such as the Australia, Canada, Indonesia, Russia, Ukraine and United States [2].

Coal is transported by truck, barge, conveyor and train to the embarking ports, which were
located mainly in Santa Marta (Drummond Port and Sociedad Portuaria), Guajira (Puerto
Bolívar), from where the coal is exported.

2.2 Oil

Colombia is the third-largest oil producer in South America [2] and the fifth-largest crude
exporter to the United States [4]. Colombian oil production has grown in recent years as a
result of new discoveries, and at the end of 2015 the country had more than 2002 million
barrels of proved crude oil reserves, with a reserves-to-production ratio of 5.5 years [5].

The market structure of the Colombian oil and gas sector is outlined by the participation of
the national oil company Ecopetrol, and domestic and international oil companies.
Ecopetrol is partner of national and foreign companies for exploration and production of
hydrocarbons and at the end of December 2015 had 30 partners for exploration and 66 for
production of hydrocarbons in Colombia and other countries [6].

In 2016, there were 301 exploration and production contracts in force, including
Exploration and Production Contracts (E&P) and Technical Evaluation Agreements (TEA),
and 75 of them belong to Ecopetrol, owner of five refineries operating with a capacity of
430000 bpd. The main facilities are Barrancabermeja (250000 bpd) and Cartagena (165000
bpd), it was expanded in 2015 and is considered the most modern refinery in Latin America
with a conversion capacity of 95%. Hidrocasanare (10000 bpd), Apiay (2500 bpd) and
Orito (2800 bpd) have smaller crude distillation capacity [6].

Shell, Exxonmobil, Total, Petrobras, Statoil and Conocophillips are some of the
multinational oil and gas companies operating in Colombia, mainly focused on offshore
and unconventional hydrocarbons resources, besides of medium and small size companies
from United States and Canada [5].

Ecopetrol has ownership of 80% of the pipelines in Colombia, which makes it the dominant
company in the industry. The oil pipeline system has 4928 km long (oil lines and polyducts
carrying crude from the source production to the refineries or export points) [3] and it is
made up of seven main lines, named Ocensa, Caño Limon Coveñas, Bicentenario,
Oleoducto de Colombia, Eastern Llanos, Transandino (OTA) and Upper Magdalena Valley.
These facilities connect production fields to refineries and oil export terminals in Coveñas,
Cartagena, Barranquilla, Santa Marta, Buenaventura and Tumaco, four of them on the
North coast and two on the Pacific coast. The downstream market is made up of suppliers

4
as Terpel, Exxon Mobil, Biomax and Chevron Petroleum Company, and retail service
stations [5].

However, since 2015 crude oil production has declined with an average production of
886198 BPD in 2016 compared to 1005837 BPD in the previous year (Fig. 2), because the
proven oil reserves have diminished and exploration activity declined in 2015 due to low
hydrocarbon prices.

1200000

1000000
Barrels per day, BPD

800000

2013
600000
2014

2015
400000
2016

200000

Fig. 2. Crude Oil Production in Colombia (Author's elaboration) [5]

The main crude oil reserves are located in the basin Eastern Llanos: Meta with Rubiales
and Quifa fields operated by Meta Petroleum Corp., besides Castilla and Chichimene fields
operated by Ecopetrol. Casanare with Pauto Sur, Cupiagua, Tua and Cusiana fields with the
majority of production comes from operation of the companies Ecopetrol, Equion Energia
Ltd. and Geopark Colombia PN S.A. Arauca with Caño Limón and Chipiron fields
operated by Occidental de Colombia [5]. Fig. 3 shows the evolution of crude oil
production by department from 2013 to 2016.

5
 100%
90%
80%
70%
60%
50% 2016

40% 2015
2014
30%
2013
20%
10%
0%

Fig. 3. Crude Oil Production by department in Colombia (Author's elaboration) [5]

2.3 Natural gas

Natural gas production to December 2016, according to National Hydrocarbons Agency

(ANH, in Spanish) was 2363,13 MMSCFD (million standard cubic feet of gas per day) and
daily average production in 2016 reported in 2450,94 MMSCFD [7]. In Fig. 4 shows
Natural gas Production in Colombia during the period 2013 to 2016.
Daily Average Production
3500
2013 2014 2015 2016
2860,18 2624,31 2473,45 2450,94
3000
Million standard cubic feet per day, MMSCFD

2500

2000
2013

1500 2014
2015
1000 2016

500

Fig. 4. Natural gas Production in Colombia (Author's elaboration) [7]

6
The Colombian territory is divided into three types of sedimentary basins: i) producing
basins are Eastern Llanos, Middle Magdalena Valley, Upper Magdalena Valley, Caguan–
Putumayo, Catatumbo and Eastern Cordillera; ii) emerging basins are Guajira and Guajira
offshore, Cesar–Ranchería, Sinú-San Jacinto and Lower Magdalena Valley, and iii) frontier
basins are Los Cayos, Urabá, Chocó, Chocó offshore, Tumaco, Tumaco Offshore and
Cauca-Patía. The main basins and natural gas fields in Colombia can be seen in Table 1.

Table 1. Basins and Natural Gas Field in Colombia

Basin Natural Gas Fields

Catatumbo Cerrito, Oripaya, Sardinata, Tibú
Eastern Cordillera Gibraltar, Guaduas, Palagua
Guajira Ballena, Chuchupa

Apiay, Calona, Campo Rico, Carmentea, Centauro, Cupiagua, Cusiana,

Eastern Llanos Floreña, Kananaskis, La Casona, La Estancia, La Punta, Pauto Sur,
Ramiriqui, Santo Domingo centro, Santo Domingo Juape, Santo Domingo
Norte, Vigia y Vigia sur.

Lower Magdalena Arianna, Bonga, Bullerengue, Caña Flecha, Cicuco, Clarinete, El Dificil,
Valley Katana, La Creciente, Mamey, Nelson, Palmer, Pedernalito.

Caramelo, Compae, Corazón, Corazón 9, Corazón West, Corazón West C,

Middle Magdalena
La Cira Infanta, La Salina, Liebre, Lisama, llanito, Opón, Payoa, Payoa
Valley
West, Provincia, Puli, Toposi, Toqui Toqui y Yarigui Cantagallo.

Upper Magdalena Arrayan, Dina Terciario, La Cañada Norte, La Hocha, Mana, Matachin
Valley Norte y Sur, Rio Opia, Santa Clara
(Author's elaboration) [10]

The main natural gas reserves are located in the basins Eastern Llanos (Casanare) and
Guajira, and the remaining is placed in the basins Catatumbo, Lower, Middle and Upper
Magdalena Valley. The main fields are Cusiana and Cupiagua in Eastern Llanos and the
offshore field Chuchupa (Guajira). The majority of production comes from the operation of
the companies Ecopetrol, Equion Energía and Chevron [7]. The chart below (Fig. 5) shows
natural gas production by department from 2013 to 2016.

7
 100%
90%
80%
70%
60%
50% 2016
40% 2015
30% 2014
20%
2013
10%
0%

Fig. 5. Natural gas Production by department in Colombia (Author's elaboration) [5]

Colombia has been self-sufficient in natural gas and exporting to Venezuela since 2007,
after signed an agreement (in 2006) between these countries to build the gas pipeline
“Ballena –Maracaibo” with a length of 225 kilometers. Then Ecopetrol and Chevron Corp.–
which jointly operate the Ballena field (Guajira) signed a sales contract with PDVSA to
provide natural gas to the western region of Venezuela. During the second stage of this
project, which was scheduled to start in January 2016, Venezuela should reverse the flow to
Colombia supplying 39 million cubic feet per day of natural gas. However, this stage was
suspended while Venezuela deals with the negatives effects of “El Niño” on its electrical
system [8].

The consumption of natural gas in the energy matrix over the last fifteen years from 7% to
about 22% (between 1995 and 2014), providing fuel to key sectors such as residential,
commerce, petrochemical, industrial, transportation (NGV), electric power and oil industry
[9]. At present, natural gas service covers more than 7.9 million homes, and maintains a
relatively stable average household consumption approaching 17 m3 per month.
Consequently, demand for natural gas depends on population growth and increased service
coverage. During 2016 the average demand for natural gas in the commercial sector was 50
GBTUD, while petrochemical sector was 20 GBTUD concentrated in two regions: North
cost and Northwest, with a share of 95% and 5% respectively. In the industrial sector,
natural gas is one of the main sources of energy with a share of 28% in the energy
consumption structure of this sector, and an average demand of 265 GBTUD [10].

The demand for natural gas as fuel for vehicles registers an average consumption of 87
GBTUD with projections of 135 GBTUD in 2029 [10] and the greater participation of

8
Central and North coast regions. This has led Colombia to the top of ten countries
worldwide according to the number of natural gas vehicle users [9].

In relation to the natural gas demand of the thermoelectric sector is approximately 325
GBTUD with energy consumption depends mainly on the hydrological contributions, as
well as the expansion of the capacity of electricity generation in the long term, while oil
industry has an average demand of 150 GBTUD with growth projections [10].

The rising demand and the diminishing existing proven reserves of natural gas, as well as
the effects of climate change, have led to the construction of the first LNG regasification
terminal since 2015, financed by private investments. It will operate beginning in 2017,
with estimated capacities of 155000 m3 of storage and 400 million cubic feet per day of
regasification [10]. The proven natural gas reserves in Colombia have diminished in recent
years (Fig. 6), which do not show satisfactory levels, while exploration activity declined in
2015 due to low hydrocarbon prices and the crisis that broke out in oil companies.

9000 8460

8000 7489 7527 7349

7187 7212 7084 7277 7058 7008
7000 6688 6630
6408
6188
5720 5508 5915
6000 5405 5460
4759
G 5000
C
F 4000
3000

2000 1653
1170 1288 1156
900
1000

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Proven Reserves Probable Reserves Total Reserves
Fig. 6. Reserves of Natural gas in Colombia (Author's elaboration) [10]

Besides, Guajira basin presents a sharp decline, a process that is counteracted by supply
basins of the Eastern Llanos and Lower Magdalena Valley. However, by 2025 the natural
depletion of Cusiana field starts, so the importation of gas becomes a priority in case of not
incorporating new reserves of it.

3. Renewable energy resources in Colombia

Renewable energy resources are used primarily in the electricity sector to meet national
energy demand of 98% of the population with 16436 MW of installed capacity in the

9
National Interconnected System in 2015, and besides a surplus that is exported to
neighboring countries such as Ecuador, which Colombia exported 457,3 GWh, and
towards Venezuela exported 27 GWh [11]. In Fig. 7 shows electricity generation from 2013
to 2016 with values between 62196,64 and 66547,82 GWh.

7000 Electricity Generation, GWh

2013 2014 2015 2016
62196,64 64327,9 66547,82 65935,44
6000

5000

4000
GWh

2013

3000 2014
2015
2000 2016

1000

Fig. 7. Electricity Generation (Author's elaboration) [11]

The main sources of electricity generation are hydroelectric power, thermal energy (coal,
liquid or gas), cogeneration and others sources such as wind power, biomass and biogas). In
2015, hydroelectric power generation represented 63,7% of the electricity matrix, followed
by thermal gas with 19,3%, thermal coal with 9,4%, others sources with 4,5%, thermal
liquid 2,4% and cogeneration with 0,8%, as shows Fig. 8.

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 120000

100000

80000

60000

40000

20000

0
Thermal Thermal Cogeneratio
Hydraulic Thermal gas Others
coal liquid n
2015 42422,66 6257,50 1578,55 12811,17 513,84 2963,51
2014 42150,10 5626,50 228,00 12563,90 471,30 3288,60
2013 38830,28 5429,05 281,48 11128,31 351,28 3169,93

Fig. 8. Technology of Electricity generation, GWh/year (Author's elaboration) [11]

Currently, no-conventional renewable energies are emerging in Colombia the installed

capacity in unconventional renewable energy has been developed on the small scale. The
„Indicative Plan 2010-2015 PROURE‟ established targets for unconventional renewable
energies in the National Interconnected System and an increase of renewable energies
participation in the energy matrix by 3,5%, and 6,5% for 2020. This plan has considered
small hydroelectric (<10 MW), wind, solar, biomass, geothermal and wave energy as
unconventional renewable resources [12].

Besides, National Development Plan 2014-2018 established targets for unconventional

renewable energies aiming to increase the installed capacity in non-interconnected zones to
11113 MW in 2018 and also states that Renewable Energy Fund and Efficient Energy
Management (Fondo de Energías Renovables y Gestión Eficiente de la Energía – FENOGE
in Spanish) and public-private partnership initiatives will attract private investment for
energy efficiency [13]. Finally, Colombian Congress enacted Law 1715 of 2014 to regulate
the integration of unconventional renewable energies into the national electricity system
[14].

11
 3.1 Hydro power

Colombia is fourth in Latin America and the Caribbean and second in South America after
Brazil in hydro-generation [1] and there is still the potential for 56 GW of hydroelectric
resources to be developed in Colombia [11].

Despite the high share of hydroelectric resources in the energy matrix, the electricity
generation dependent on climatic variables such as „El Niño‟ weather phenomenon, causes
periods of droughts which it is necessary that the generation system to temporarily increase
thermal generation (thermal gas, liquid or coal).

In 2015 energy demand accounted for around 65816 GWh of which 42422,66 GWh
(64,5%) were contributed by hydropower resources and the economic sector consumed the
generated electricity were the manufacturing industry (43,6%), and the mining sector
(22,6%) [11]. The chart below (Fig. 9) shows the evolution of hydroelectric power
generation from 2013 to 2015.

At the end of 2015, five hydroelectric power generation projects were under construction:
Ituango (1200 MW), El Quimbo (400 MW), Carlos Lleras Restrepo (78.2 MW), Cucuana
(60 MW) and San Miguel (42 MW). The „Expansion of Power Generation and
Transmission Plan 2015-2029‟ states that from 2020 electric demand will surpass supply
and the additional installed capacity of the system will require between 4208,3 MW and
6675,5 MW. Therefore, in the most diversified scenario it is necessary to incorporate
conventional and unconventional sources to generate electricity, mainly wind and coal
thermal plants [15].
43000
42422,66
42500
42150,10
42000

41500

41000

40500

40000

39500

39000
38830,28
38500
2013 2014 2015

Fig. 9. Hydro-power in the electricity generation, GWh/year (Author's elaboration)

[11]

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 3.2 Wind power

The potential of wind power is estimated to be around 49,5 GW with local winds of
average speed of 9 m/s and up to 80 meters in Guajira department, where since 2004
operates the wind farm ‟Jepirachi‟ with a nominal capacity of 19,5 MW. „Jepirachi‟ is
owned by the Medellin Public Utilities Company (EPM). In 2015, the electricity generation
by wind energy was 68,6 GWh [12].

3.3 Solar energy

In 2010 there was around 9 Megawatts peak (MWp) of solar photovoltaic capacity,
belonging to private systems and some of them operating in non-interconnected zones.
Over the territory there is a solar irradiation average of 194 W/m2 [12]

References
[1] Ministry of Foreign Affairs. (2012) Colombia: a country with energy diversity. Technical report. Bogotá,
Colombia.

[2] BP. (2015). BP Statistical Review of World Energy. London: BP.

[3] The Mining and Energy Planning Unit (Unidad de Planificación Minero Energética-UPME in Spanish).
(2009). The Petroleum chain. Bogotá, Colombia

[4] EIA. (2016, April 29). U.S. Imports by country of origin: EIA. Retrieved from EIA Website:
https://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbbl_m.htm

[5] ANH. (2016). Producción mensual de petróleo en Colombia: ANH. Retrieved 5 15, 2017, from ANH Web
site: http://www.anh.gov.co/Operaciones-Regalias-y-Participaciones/Sistema-Integrado-de-
Operaciones/Paginas/Estadisticas-de-Produccion.aspx

[6] Ecopetrol. (2016). Reporte Integrado de Gestion Sostenible 2015. ECOPETROL. Bogotá, Colombia:
Ecopetrol.

[7] ANH. (2016). Producción mensual de gas en Colombia: ANH. Retrieved 5 15, 2017, from ANH Web site:
http://www.anh.gov.co/Operaciones-Regalias-y-Participaciones/Sistema-Integrado-de-
Operaciones/Paginas/Estadisticas-de-Produccion.aspx

[8] PDVSA. (2016). PDVSA anuncia desfase en el inicio de envío de gas a Colombia: PDVSA. Retrieved 5
15, 2017, from PDVSA Web site: http://www.pdvsa.com/

[9] The Mining and Energy Planning Unit (Unidad de Planificación Minero Energética-UPME in Spanish).
(2016, January). Informe Mensual de Variables de Generación y del Mercado Eléctrico Colombiano -
Diciembre de 2015. Bogotá: SIEL.

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[10] The Mining and Energy Planning Unit (Unidad de Planificación Minero Energética-UPME in Spanish).
(2015). Balance de Gas Natural en Colombia 2016-2025. Bogotá: UPME.

[11] The Mining and Energy Planning Unit (Unidad de Planificación Minero Energética-UPME in Spanish).
(2016, January). Informe Mensual de Variables de Generación y del Mercado Eléctrico Colombiano -
Diciembre de 2015. Bogotá: SIEL.

[12] The Mining and Energy Planning Unit (Unidad de Planificación Minero Energética-UPME in Spanish).
(2010). Indicative Plan 2010-2015 PROURE-May 2010. Bogotá: SIEL.

[13] National Planning Department (Departamento Nacional de Planeación-DNP in Spanish). (2014). Web
site: https://www.dnp.gov.co/Plan-Nacional-de-Desarrollo/Paginas/Que-es-el-Plan-Nacional-de-
Desarrollo.aspx

[14] The Mining and Energy Planning Unit (Unidad de Planificación Minero Energética-UPME in Spanish).
(2014). Web site: http://www.upme.gov.co/Normatividad/Nacional/2014/LEY_1715_2014.pdf

[15] The Mining and Energy Planning Unit (Unidad de Planificación Minero Energética-UPME in Spanish).
(2015). Expansion of Power Generation and Transmission Plan 2015-2029- Diciembre de 2015. Bogotá:
SIEL.

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