September LNG imports to Colombia could surpass last year’s levels: SPGCI

September LNG imports to Colombia are nearing, and could even surpass, the volumes imported in the same month of 2023, based on data from S&P Global Commodity Insights and S&P Global Commodities at Sea(opens in a new tab).

Colombia has imported around 70,000 metric tons of LNG so far this month, however, the total could be higher as another cargo may have already been delivered by the Marvel Crane LNG carrier, CAS data shows.

The Marvel Crane loaded around 80,000 metric tons of LNG from the Cameron LNG facility in Louisiana on Sept. 8, based on Commodity Insights data. It arrived at the SPEC LNG import terminal in Cartagena on Sept. 12, positioning itself next to the Hoegh Grace, which serves as the terminal's floating storage and regasification unit, CAS data shows. The ship sailed away from the FSRU on Sept. 14 and remained floating in the Bay of Cartagena until returning next to the FSRU on Sept. 18.

Sources previously said the delivery of Colombia-bound LNG cargoes typically depends on gas-fired power demand at the time of their arrival, which can result in a carrier unloading a cargo in more than one installment. The Marvel Crane appears to have unloaded volumes in Cartagena, based on its draft when it departed the terminal on Sept. 19.

The ship was carrying a cargo that Calamari LNG, Colombia's sole LNG importer, bought from BP on a spot basis, a source with knowledge of the situation previously said. Neither BP nor Calamari LNG immediately responded to requests for comment on the potential cargo delivery.

If the total volumes on the vessel were delivered to the terminal, month-to-date import figures would reach around 150,000 metric tons. For comparison, Colombia imported 120,000 metric tons of LNG in September 2023, which marked the start of a near eight-month LNG buying spree driven by severe drought. In September 2022, only about 10,000 metric tons of LNG were imported to Colombia.

September imports set to increase

LNG imports to Colombia are set to rise with the delivery of a new cargo on the BW Magnolia. The BP-chartered ship had an estimated arrival date of Sept. 20, based on CAS data. However, the vessel is expected to arrive carrying a cargo also bought on the spot from BP, according to a source with knowledge of the situation.

While the end of the El Niño-driven drought that spurred Colombia's LNG imports was declared in May, LNG imports appeared to recover last month, with 100,000 metric tons imported, up from 40,000 metric tons in July. Sources had attributed the recent increase to limited domestic gas supply and the need to refill inventories.

Hydropower traditionally accounts for around 70% of Colombia's electricity generation, and the LNG imported by Calamari is used to fuel three thermal power plants that serve as backups during periods of low hydro levels.

The useful volume of Colombia's hydropower reserves stood at 50.20% as of Sept. 20, down from an average of 54.52% in August, according to the latest data from national power grid operator XM. This percentage aligns with the historical minimum average recorded for September. The reserves reached their lowest point this year in March at 31.5%.