TRANSCANADA, PARTNERS PLAN BIG GAS PIPELINE IN COLOMBIA

TransCanada Pipelines Ltd., Calgary, has agreed to lead a $310 million program calling for Colombia's second big proposed gas pipeline system. The system's 344 km, 20 in. main line will transport gas from the city of Mariquita, northwest of Bogota in Colombia's Tolima department, to Cali, near the Pacific coast in Cauca department. Cali is the site of the Thermovalle power station.

March 6, 1995

2 min read

TransCanada Pipelines Ltd., Calgary, has agreed to lead a $310 million program calling for Colombia's second big proposed gas pipeline system.

The system's 344 km, 20 in. main line will transport gas from the city of Mariquita, northwest of Bogota in Colombia's Tolima department, to Cali, near the Pacific coast in Cauca department. Cali is the site of the Thermovalle power station.

The project is to include about 420 km of small diameter distribution lines to serve 47 other communities in the Cauca Valley, as part of Colombia's nationwide gasification plan. System components are to be in full operation by yearend 1996.

TransCanada and several other project partners in a pact last month with state company Empressa Colombiana de Petroleos (Ecopetrol) agreed to play significant roles in construction and operation of the gas pipeline system.

TransCanada, with a 34% interest in the project, is to have overall management responsibility and the main system operating role, the latter with assistance from Gas Natural del Oriente, holder of a 14% interest. Spie-Capag and Fluor Daniel, which each hold a 5% interest, are to be project constructor and engineering and procurement contractor, respectively.

Proposed Pipeline (32582 bytes)

Other project interest holders are BP International with 20%, Petro-Colombia 12%, and Destillados Agricoles and Inversora Arlloz 5% each.

In May 1994, Enron Corp., Houston, agreed to play a leading role in construction of Colombia's first large interdepartmental gas pipeline, a 357 mile, 18 in. system from Barrancabermeja in Central Colombia to Ballena on the country's Caribbean coast (OGJ, May 23, 1994, p. 29). Enron Development Corp. in December 1994 finished arranging financing for that project, scheduled to start up in 1996.