By: Inspenet, October 26, 2022
The Canadian company Canacol Energy signed an agreement with the Chinese consortium Shanghai Engineering and Technology Corp. (Setco), to build a gas pipeline 289 kilometers long and 22 inches in diameter, from the Jobo gas processing facility in the department of Córdoba to Medellín.
Setco is a pipeline manufacturing and construction consortium with experience building major gas pipelines in Asia and the Middle East.
While, the Canadian oil company Canacol Energy currently has a production capacity of approximately 250 MMscfpd and anticipates increasing it to more than 300 MMscfpd. This through the drilling of additional wells and the execution of additional infrastructure before the gas pipeline enters service.
Under the terms of the agreement, Setco will be responsible for paying 100% of the cost of construction of the pipeline; and will own, operate and maintain the pipeline.
Furthermore, Canacol will not own, or pay, any part of the costs associated with the pipeline project, including its construction or operation, it said. The Canadian oil company’s only commitment under the agreement is limited to the execution of a transportation agreement, whereby Canacol will pay a fixed rate for a certain volume of gas over a certain period of time.
The pipeline is scheduled to go into operation in December 2024.
This material from rumbominero.com was edited for clarity, style and length.
Source : https://www.rumbominero.com/colombia/canacol-china-setco-gasoducto-medellin/
Photo: ShutterStock
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