Colombia’s economy could soon be hit by soaring energy costs as the South American country is considering LNG imports to meet rising natural gas demand while its domestic production slumps. Large gas and energy-intensive industries could be hit hard by a further spike in their energy costs, as LNG imports could be two or three times more expensive than domestic supply, according to industry officials and analysts who spoke to Bloomberg.
With domestic supply falling and demand rising, Colombia likely needs to turn to imports—and this will cost its industry a lot. State energy firm Ecopetrol is considering importing LNG, which will be more expensive than domestic supply. Colombia was also planning to start importing natural gas from Venezuela this year. But this plan may not materialize in the near term because of a decayed idle pipeline in dire need of repairs.