These Are the Reasons That Natural Gas Rose in Colombia

Energy & Natural Resources attorney Inés Elvira Vesga was highlighted in an article published by Valora Analitik exploring the reasons for the increase in natural gas prices in Colombia. Ms. Vesga explained that rates depend on a formula established by the country's Energy and Gas Regulatory Commission (CREG), instead of being set by the sellers. Because of this, various factors, such as the price of drilling and transporting gas, can affect the costs for consumers. She also noted that the risk of losing energy auto sufficiency is not a new problem, because as long as there is not enough natural gas in the national market to meet demand, companies will have to import it, which is more costly.

"It is important to know that importing gas is a regulated process, which is done through the Market Manager in an organized fashion. It is not an isolated action, nor was it unknown to the authorities," she said. "On the contrary, at the end of 2024, since the regulation, the possibility of using surplus imported gas to meet domestic demand was created as a reliability measure."

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