Major Colombian natural gas distributors Promigas and Gases del Caribe are ending supply contracts with producer Canacol Energy, according to reports from The Rio Times.
The move comes as the country faces mounting pressure on its domestic gas supply, with a dry El Niño pattern expected to further strain production and distribution networks.
The contract terminations add to existing tensions in Colombia’s energy sector, where Canacol has been embroiled in a legal dispute over the validity of its supply agreements.
Gases del Caribe has stated that its contracts with Canacol remain valid, highlighting the ongoing disagreement between the parties.
This development follows a recent ruling by an Alberta court that permitted Canacol to terminate its natural gas supply contracts in Colombia, removing a critical source of domestic production at a time when the country’s energy security is already under pressure.
The natural gas supply crunch in Colombia has intensified after a Calgary judge granted Canacol Energy the legal authority to terminate its supply contracts.