National Government shows clear incentives to fuel Natural Gas (Natural gas, LPG, NautiLPG, AutoLPG, LNG) as part of the development of Colombian energy transition.

Therefore, Colombian President, Ivan Duque signed on August 4th, 2021, a law that “promotes the supply, continuity, reliability and coverage of fuel natural gas in Colombia” (hereinafter the “Law”)

The Law seeks to generate the appropriate legal frame for the Ministry of Mines and Energy and its affiliate administrative entities issue the required rules to guarantee natural gas supply and reliability in Colombia, to be Colombia’s main resource for energy transition.  Thus, this Law created the required legal frame to develop important issues in the natural gas industry, such as:

1. Include in the Natural Gas Supply Plan, established by Resolution 40304, 2020 from the Ministry of Mines and Energy, additional gas pipeline projects required to connect offshore discoveries to the National Natural Gas Transportation System;
2. Create incentives for programs aimed to replace firewood, charcoal, kerosene, waste, gasoline, and alcohol by natural gas as energy source;
3. Prioritizes projects that substitute diesel by natural gas for power generation;
4. Declare as national and strategic interest the mass use of natural gas, AutoLGP and NautiLGP;
5. Strengthening of the Colombian Fuels Information System (SICOM for its Spanish acronym) for the registry of operations of AutoLGP and NautiLGP; also, to control the compliance of technical regulation applicable to vehicles conversion, converted vehicles and service stations that supply the aforementioned fuels.
6. Mass public transportation systems must guarantee that at least 30% of the vehicles operate with natural gas;
7. Creation of institutional incentive programs so that cargo transportation tends to operate 30% with natural gas vehicles;
8. Create incentives for power self-generation and power cogeneration from natural gas.

To review the Law, please click on the following link: https://dapre.presidencia.gov.co/normativa/normativa/LEY%202128%20DEL%204%20DE%20AGOSTO%20DE%202021.pdf