“It’s been a long time coming,” Poten & Partners LNG analyst Sergio Chapa told NGI. “Ecuador has been dealing with energy issues for years. The last El Niño was a crisis with blackouts in the country. The government implemented reforms for natural gas and energy imports to strengthen the power grid.”
As a result of the power crisis, Ecuador began importing LNG via truck and also stationed a power ship off the coast of Guayaquil. This, however, would be the first large-scale LNG import project in the country. Chapa estimated it would mean about 0.4-0.75 Mt/y in volumes, or nine cargoes.
The news comes as another El Niño is in force, which means that nations in the northern part of South America, often reliant on hydroelectric power generation, can experience drought. Natural gas is then a key backup baseload option.
In nearby Colombia, Amazonica LNG recently signed an engineering, procurement and construction contract with China’s Jereh Group to build Colombia’s first onshore LNG import terminal near Barranquilla.
The $180 million, 150 MMcf/d project is scheduled to come online in early 2028 and would include a jetty with dual loading arms. It would connect to Colombia’s national pipeline system.
Chapa said in the region, the next country to develop LNG import capacity could be the Bahamas. “There are a bunch of small import projects in the Bahamas that if you add them up could mean pretty decent demand,” he said.
Natural Gas Intelligence
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