Black & Veatch, a leading provider of low-carbon energy infrastructure solutions, has been selected to conduct the technical, engineering and commercial studies of the Andes Energy Terminal (AET) located in the Aguadulce Peninsula in Buenaventura, Colombia. The study will build on commercial and technical work previously completed by the sponsors and focus on the development of a liquefied natural gas (LNG) regasification facility and 400 megawatts (MW) of natural gas-powered generation assets, in order to deliver reliable electricity to cities in central and southwestern Colombia.
With economic growth returning in many sectors and robust GDP projections, Colombia is anticipated to experience power generation shortfalls in 2022 and consistent natural gas deficits by 2023, even as global LNG production soars. The AET seeks to aid Colombia’s energy transition to more sustainable power sources and add resilience and reliability to an electric grid heavily reliant on hydro generation assets that are subject to weather-related production variance. In addition, the AET looks to develop a hyperscale data center and new facilities for storing liquid fuels, including infrastructure to meet the emerging opportunity in the hydrogen market.
“Our energy terminal reflects a forward-looking approach to solving Colombia’s energy and data infrastructure needs,” said Manuel Tenorio, Chairman, Andes Energy Terminal. “By combining fuel supply, efficient and sustainable power generation, storage and data infrastructure in one location, we can achieve significant efficiencies to reduce the overall environmental footprint of the project and provide a strong basis for much needed investment in the Southwest region of Colombia.”
The AET is strategically located within the Bay of Buenaventura presenting an opportunity to build a multi-purpose infrastructure project leveraging a natural deep-water port that provides ease of access, rights of way and simplified permitting due to its location near the Port of Buenaventura. The Port is considered the main foreign trade port in Colombia with roughly 65% of international cargo mobilized through its facilities.
The feasibility studies, which are funded by a grant from the United States Trade and Development Agency (USTDA), will verify the proposed project site’s suitability, define the project design requirements, and estimate capital and operating costs. It also will assess the financial viability and define financing options while preparing a detailed implementation and construction plan.