An extensive gas network

Colombia

Erles Espinosa, general manager of Alcanos de Colombia, talks to The Energy Year about the company’s role in Colombia’s gas industry, how extensive its network is and the main challenges and opportunities in the country’s gas sector. Alcanos de Colombia is a natural gas distributor and marketer.

What is Alcanos de Colombia’s role in the Colombian gas sector, and how extensive is your pipeline network?
We are a pioneering company in Colombia’s natural gas sector, with a rich history spanning 47 years. Our pipeline network is truly expansive, stretching over 14,000 kilometres, which is a figure that even surpasses that of many transporters in the country. We take pride in serving more than 4 million gas users, which makes us the leading provider in the south of Colombia and the fourth-largest nationally in terms of users.
Our operations are supported by nine operational centres and a workforce of over 1,280 dedicated employees. While our primary focus has always been on the distribution and marketing of natural gas, we’ve also expanded into other areas, such as CNG services.

What are the main challenges and opportunities in the country’s gas sector?
We firmly believe that natural gas will continue to play a pivotal role in Colombia’s energy landscape, particularly as the country navigates its energy transition. Natural gas has become more than just a fuel source. It’s now an essential part of Colombian families’ lives, symbolising dignity and improved life quality.
One of the problems is the imbalance between supply and demand. Our projections – which are aligned with data from the UPME [Mining Energy Planning Unit], the Ministry of Mines and Naturgas – indicate a deficit of more than 15 GW by the end of the year.
Despite these challenges, we see numerous opportunities on the horizon. We’re seeing renewed interest from large industrial customers who are returning to natural gas as their most competitive and efficient energy source.
Additionally, we’re working to revitalise the natural gas vehicle (NGV) market, which has stagnated in recent years. We’re advocating for government incentives, not just for personal vehicles but also for trucks and tractor trailers, to make NGVs more attractive. To support this, we’re looking to increase the number of refuelling stations for NGVs.

What initiatives are you undertaking to expand your services and promote sustainable energy solutions?
One of our key programmes is Gas for Builders, which focuses on integrating natural gas infrastructure into new housing developments. This initiative ensures that as Colombia’s urban areas grow, access to natural gas grows with them. We’re also reaching beyond urban centres with our Veredas del Huila project.
This innovative programme, born from a collaboration between local municipalities, the governor’s office, Ecopetrol and Alcanos, aims to bring natural gas to rural areas. We have already provided service to our 1,555 rural users, which marks an important step in access to rural gasification.
To reach areas where traditional pipeline infrastructure is not feasible, we’re expanding our CNG services. This allows us to serve off-grid populations, ensuring that even remote communities can benefit from clean, efficient natural gas.
Perhaps one of our most exciting initiatives is our foray into renewable energy. For seven years we’ve used a solar photovoltaic system at one of our compression centres, which has resulted in impressive energy cost savings of around 40%. We’re carefully monitoring its performance with the aim of replicating this success across our other operational centres.

How are you contributing to the social and economic development of your service areas?
At Alcanos de Colombia, we see our role extending far beyond merely providing natural gas. We view our service as a crucial contributor to the quality of life in Colombian homes. One of our key initiatives in this regard is the Gas Social programme, implemented in partnership with Ecopetrol and Invercolsa.
This programme aims to make natural gas more accessible by subsidising installation costs. A prime example of its success is in Pasto, where we’re adding 3,602 new users to our existing base of 49,000. This expansion not only provides more families with access to clean, efficient energy but also contributes to local economic development through job creation and improved infrastructure.
Recognising that many of our customers may not have access to traditional banking services, we’ve also started offering loans for various purposes. These loans range from financing home appliances and insurance to even helping customers purchase motorcycles.
This programme has shown remarkably positive results, with repayment rates that surpass those in the traditional financial market. This success demonstrates that when offered sustainable products with reasonable interest rates and proper support, people are both willing and able to meet their financial obligations.

What are your main short- to medium-term goals and strategies?
Our vision for Alcanos de Colombia extends to 2026 and beyond, with a focus on sustainable growth and operational excellence. In the immediate term, our primary goal is to ensure 100% sourcing to meet the needs of our market users. This translates to securing over 25 GW of natural gas, a target we’re diligently working towards.
Looking slightly further ahead, we’ve set ambitious growth targets. By 2026, we aim to expand our user base by more than 1.5 million customers. This growth will come not just from our existing markets but also through strategic expansion into new areas.
Alongside this user growth, we’re targeting a significant increase in our operational EBITDA. We aim for an increase of more than 30%. To achieve these goals, we’re implementing a multifaceted strategy. A key component is the modernisation of our operations through technology integration. We’re working towards serving users remotely, implementing smart metering systems and improving our emergency response times through technological solutions.
We’re also expanding beyond our core gas business, such as with our non-banking financial services. This business not only provides an additional revenue stream but also helps our customers improve their quality of life.
All these efforts are underpinned by our commitment to creating a positive work environment. We’re focused on building trust, instilling pride and fostering a sense of belonging among our employees. We believe that when our team feels valued and motivated, they’ll go above and beyond in serving our customers and achieving our organisational goals.

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