How Big of a Risk Is Colombia's Growing Natural Gas Deficit?

Energy & Natural Resources attorney Inés Elvira Vesga was featured in a Q&A with The Dialogue's Energy Advisor about Colombia's growing natural gas deficit and the country's limited short-term ability to increase domestic oil and gas production. Ms. Vesga explained that declining exploration activity, withdrawal of several foreign companies and broader structural constraints have narrowed the country's supply options, while the resulting reliance on imports of liquefied natural gas (LNG) is placing additional pressure on the energy market. She also noted that these dynamics present risks for stable electricity generation and could hinder the country's longer-term energy transition goals.

"The cost differential between imported LNG and domestically produced gas is significant, with import prices running two to three times higher. This has sharply driven up consumer gas prices, and experts warn that under full import dependence, prices could rise by as much as 90 percent in some cities," she said.

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