Resolving the LPG deficit

Colombia

Sergio Corena Guerrero, general manager of Okianus Terminals, talks to The Energy Year about the key position the terminal has in Colombia, how the company is catering to the increase in LPG demand and its role in the LPG market in Colombia. Okianus Terminals is a specialist in the handling of bulk liquids.

How is Okianus Terminals positioned, and in what ways does it cater to the uptick in LPG demand?
Okianus Terminals was born a decade ago and is specialised as a liquid terminal catering to the growing demands of the Colombian market. The terminal is located in Cartagena, strategically positioned in the Mamonal industrial zone and less than a kilometre away from Reficar, the second biggest oil refinery in Colombia.
This makes us a strategic link in the national fuel chain and a key lever for future energy developments in the country.
We were the first private liquids terminal with infrastructure for LPG imports, starting operations in 2017. This was at a time when Colombia started to have an LPG deficit. We tripled our storage capacity by 2021 in response to the increasing deficit. Since then, Okianus became the main port for LPG imports, placing us at the heart of Colombia’s energy transition.
Colombia is experiencing a rapid increase in its LPG deficit, and we aim to provide the best solution to cover it.

How is Okianus Terminals key in the present and future of the LPG market in Colombia?
We are a maritime terminal focused not on purchasing products but rather on providing services to ships. We provide efficient loading and unloading and supply safety storage for imported LPG.
Since we started our LPG operation seven years ago, 270,000 tonnes were imported through Okianus, equivalent to 38% of yearly demand in the country.
Currently, Colombia consumes about 60,000 tonnes of LPG per month, and 15,000-20,000 tonnes are imported per month through Okianus, which is around 30% of the national market share.
Moving forwards, we believe that by 2028 more than half of the Colombian demand for LPG will be supplied via imports.
In collaboration with Colgas, the main player in the Colombian LPG market, with a 34% market share, we aim to increase our storage capacity to cover all LPG imports by 2025, which will be around 30,000-35,000 tonnes per month.

What reception and storage capacities does Okianus Terminals have, and what other integrated services does it offer to its clients?
Although we are currently focusing our efforts on the energy market, we are not limited to it, and we handle other products. We have a total storage capacity of 40,000 cubic metres for LPG, vegetables oils and chemicals. We are currently expanding our storage capacity for fuels (including LPG) and chemicals, and still have land left over for future projects.
We have a very competitive infrastructure for the export and import of crude palm oil, which is currently a very important operation for us. Colombia produces 1.8 million tonnes of crude palm oil per year, and some 500,000-600,000 tonnes are exported. This has become a flagship product under our portfolio.
We also offer integrated logistics services, which include the reception, storage and transport of clients’ products, along with other complementary services. We have focused on creating custom-made solutions for clients.
In keeping with the current trends of Industry 4.0, our LPG operations are fully automated, and we are in the process of digitalising our operations end to end, guaranteeing more efficiency in our logistics, better data analysis and increased client satisfaction.

How important is sustainability for the terminal?
Sustainability has always been at the heart of what we do. In the last two years, we have been measuring and certifying our carbon emissions, and although our emissions are rather low, we are working on a plan to make the terminal carbon neutral.
To this end, we are implementing some projects that will reduce our emissions footprint, such as photovoltaic energy projects. Our goal by 2025 is to install solar panels for power generation and self-consumption. Moving forwards, we are looking at hydrogen, as it could be a viable solution for the future.
Moreover, as a link in the LPG supply chain, we are supporting the country’s transition to cleaner energy sources. For many regions of the country which are not interconnected and require a fuel to replace firewood, propane is the best solution.
The increase in the use of LPG for cooking in Colombia reduces deforestation by alleviating the dependence on firewood and increases people’s life expectancy, as they suffer health issues from cooking with firewood.
Currently, there are 3.5 million families using LPG for cooking, while potentially 1.4 million are using firewood.
Lastly, there are many developments aligned with the increased use of LPG on a local and national level, such as developments regarding Nauti LPG and Autogas.

To what extent does Okianus Terminals aim to be an energy logistics hub in the Caribbean?
Today’s clients are looking for markets that are not specific to one country. International logistics must become more efficient, and we tick this box. For example, there is an ever-growing need to transport goods to and from Europe, and our location in the Caribbean – along with the fact that the terminal has an area qualified as a free zone – makes us a clear option for clients interested in consolidating cargo. We want to become an important energy logistics hub, not only for Colombia but for the LatAm region.
We are always looking to offer solutions to needs that arise in the liquids sector. We focus on customer needs, but more than anything else, we focus on the needs of the country and the greater Caribbean region.

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