Colombia considers expanding role of gas market manager

Colombia's energy and gas regulator, CREG, is exploring a major restructuring of its natural gas market manager. The current manager, Bolsa Mercantil de Colombia, handles data collection, centralization, and publication for the sector. CREG has commissioned a study to assess potential gaps in regulation, operations, technology, and governance that may need addressing as the market evolves.

The study also considers whether the manager should expand its role to operate the gas supply and transportation system. This approach would align with models used in Colombia's power sector and by gas system operators internationally. The study is expected to conclude by the end of March 2027.

Colombia's shift from being self-sufficient in gas to becoming a net importer has raised concerns. Bancolombia predicts that imported gas could make up more than half of the country's total supply by 2029. This shift is driven by declining output from mature fields and insufficient new discoveries, coupled with rising demand.

The situation is further complicated by the El Niño weather cycle, which began in July and is expected to peak later this year. The weather phenomenon could strain Colombia's hydro-dependent power grid, increasing the need for gas to power backup thermal plants.