Currently, there is no mechanism in Colombia to efficiently respond to national or international emergencies that affect the continuity of supply of hydrocarbons or liquid fuels derived from petroleum.
Additionally, Colombia is in process of joining the International Energy Agency (“IEA”), for which it requires (i) instrumentalizing an International Energy Program aimed at promoting the security of oil supply under reasonable and equitable conditions; and (ii) develop mechanisms and measures to attend the emergencies that may affect the security of hydrocarbons supply at international or national levels.
In that context, trough Decree 1648 of 2022, the National Government established measures to be led by the Ministry of Mines and Energy (“MME”) and the National Hydrocarbons Agency (“ANH”) for the attention of hydrocarbons and liquid fuels supply emergencies.
A national emergency in respect to hydrocarbons and liquid fuels will be identified by the Ministry of Mines and Energy in accordance with the public service nature of the fuel oil distribution activity. On the other hand, it will be considered an international emergency when the IEA brings a collective action, provided that Colombia is an active member of such agency.
In light of an emergency, the MME can (i) prioritize the demand of consumers of hydrocarbons, liquid fuels and their mixtures with biofuels, upon recommendation of the "Intersectoral Commission for National or International Emergencies related to the supply of hydrocarbons" (Comisión Intersectorial para las Emergencias Nacionales o Internacionales Relacionadas con el Abastecimiento de Hidrocarburos); or (ii) restrict their offer. To take these measures, the MME will be able to regulate the conditions, characteristics, and any other matter required for its implementation.
The "Intersectoral Commission for National or International Emergencies related to the supply of hydrocarbons” was created by means of Decree 1505 of 2022, with the purpose to guide and coordinate the measures aiming to efficiently respond to national or international emergencies that affect or may affect the continue demand or offer of hydrocarbons or its by-products.
For its part, the National Hydrocarbons Agency (“ANH”) can establish emergency oil reserves when it deems it necessary to respond to an international or national emergency. The “Intersectoral Commission for national and international emergencies related to the supply of hydrocarbons” may determine the convenience of the release of reserves and recommend it to the ANH in accordance with its Manual of Measures. The MME may regulate the matters related to the constitution and release of such reserves.