Delivering projects across Colombia’s industries

Colombia

Andres Canela, general manager of Schrader Camargo, talks to The Energy Year about how the company is adapting to changing client-contractor dynamics and the importance of the hydrocarbons sector for it. Schrader Camargo is an EPC company focused on civil works, electromechanical assemblies and operations and maintenance in the energy, manufacturing and mining sectors.

How are you adapting to changing client-contractor dynamics for successful projects in Colombia?
Clients now wield greater bargaining power and sophistication and are therefore demanding more complex projects that shift the dynamics of the contractor-client relationship. As the sector’s potential grows, the unique value each contractor offers is becoming more apparent, necessitating stronger, long-term partnerships to meet these evolving needs.
The social licences to operate and project requirements have also changed drastically, requiring closer client-EPC coordination and greater emphasis on technical and precise solutions. Globally, the EPC market is booming, making it harder for Colombia’s smaller projects to attract major players. This highlights the need for deeper client-contractor involvement from the early stages to better manage risks and increase project success rates.
As an industry, we understand the need to invest in early-stage collaboration, ensuring that both implementation and technical risks are addressed promptly. Colombian construction companies must become enablers for executing large projects and mitigating challenges for investors.
We must transform our methods to meet new demands and technological advancements. This transformation is ongoing and essential for Colombia to attract global investment.

How important is the hydrocarbons sector for Schrader Camargo, and what are the most important projects that you are currently covering?
We focus on a series of projects at a time, aiming to support clients from the earliest stages until their plant starts operating. Our strength lies in construction and problem solving. We handle technical challenges and collaborate with international experts for our projects.
Large ventures often face delays and cost overruns. In OECD countries, mega-project delays average 18 months, and cost overruns average 80%. We aim to mitigate these risks by improving construction processes, ensuring projects meet established deadlines. Schrader Camargo’s premise is to accompany projects throughout the value chain, with the vision that all its clients will want to continue working with the company.
Currently, we are focusing on downstream activities, such as pumping stations and storage, with a view towards Colombia’s decarbonisation goals and new exploration opportunities.
We believe Colombia holds significant opportunities in energy storage and transportation, with investment plans across the sector poised to continue. The country’s energy transition is crucial, and both the public sector and private companies such as ours will need to invest to support this shift.

To what extent are you involved in clean and renewable energy projects?
With abundant green energy resources, Colombia is well positioned to attract energy-intensive industries. The Hidroituango power plant is a major project due to its size and importance for Colombia’s energy spectrum. The project will meet 17% of Colombia’s electricity demand. We are proud of our contributions to this project, including electromechanical assembly for the first four turbines, civil works for turbines 3 and 4 and plugging one of the diversion tunnels to mitigate project risks.
Additionally, we are part of the CYS Consortium, formed by Yellow River Co. LTD Sucursal Colombia and Schrader Camargo for constructing civil works for turbines five through eight, which are expected to be completed in 2027.
Regarding solar projects, we focus on medium-to-large solar parks and have learned that optimising construction processes can significantly improve project outcomes. By adopting best practices from around the world, we aim to be a key partner for clients developing solar parks by ensuring efficient and cost-effective construction.
We have invested heavily in building our capabilities to offer better solutions to the market, including the notable 360-MWp photovoltaic power generation plant in Honda by Consortium SDORO (composed of Schrader Camargo and Andrade Gutierrez). This project, with commercial operations beginning in late 2025, will be a milestone for Colombia and the first of many we hope to participate in, demonstrating our ability to reduce costs and mitigate risks.

What strategies are you employing to navigate the complexities of offshore gas infrastructure projects in Colombia?
Colombia has significant potential in offshore gas, with several projects anticipated in the coming years. While specific timelines are uncertain, we are preparing to be a major service provider for the onshore components of these projects. Offshore platforms require substantial investments not only at sea but also onshore for storage, transport and other essential services.
We are positioning ourselves to be a key player in building the necessary infrastructure to support the flow of gas from offshore platforms to onshore facilities and vice versa. Colombia has limited experience and a small pool of contractors for such projects, allowing room for local growth and the formation of alliances to build this capacity.
Our focus is on the onshore side, but we have the alliances and capabilities to be a major player in this sector, handling storage, transport and other necessary infrastructure.

What are the added values that differentiate you as a local player with international experience?
These 60 years have taught us a lot. In this business, the likelihood of setbacks is high. Many major engineering and construction companies from the past 60 years no longer exist, and those that do have had their share of difficulties.
We’ve learned to understand our capabilities and ensure we deliver on our commitments to clients. Our stance has helped us guarantee project completion, no matter the cost. We only take on projects we know we can handle, providing clients with peace of mind. Moreover, our financial stability allows us to secure the development and financing of projects that are not heavily leveraged by credit with sufficient in-house funding capacity.
Over these decades, we’ve developed strong technical, financial, logistical and commercial capacities. We’ve collaborated with major companies and learned from the best in the industry. Our clients and partners include prominent names such as Alfa Group from Mexico and Ecopetrol, and the company also has sales teams in the Dominican Republic and Peru.
Not only do we ensure your project goes well. We also provide peace of mind by sharing the benefits of any positive outcomes during its construction. Another key value, which is sometimes hard to convey, is our highly committed team. Our people and their know-how and dedication are essential for the successful development of our projects.

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