Energy market in Colombia 

Colombia is the fourth largest economy in Latin America. The country has a geographically advantaged location and high potential in non-conventional renewable energy sources. Historically an oil and gas and mining intensive economy, the country is facing a process of potential policy shifts impacting the petroleum and mining sectors.

Colombia is determined to accelerate a just energy transition, focusing efforts in decarbonizing the oil & gas sector, expanding generation of renewables and acquiring knowledge in strategic (critical) minerals. Canadian companies have opportunities in all these sub-sectors.

Key opportunities for Canadian energy companies in Colombia:

• Colombia has incorporated hydrogen pilots and is looking to expand knowledge and capacity (especially for green hydrogen).
• Technology and technical knowledge in energy efficiency, carbon capture and storage.
• Decarbonize the oil and gas industry.

Notable challenges for Canadian energy companies in Colombia:

• Companies without a local presence in Colombia may face more challenges than locally established ones.
• Business is conducted mostly in Spanish. Having a Spanish-speaking resource is an advantage.
• Building trust with local contacts require a long-term commitment.
• International products and services are price sensitive in the market.
• Recent changes in leadership within government entities have created uncertainty in the energy sector.

Colombian business landscape:

• Colombia's position on the continent allows it access to both the Pacific Ocean and the Caribbean Sea. The country shares borders with neighbor countries such as Panamá, Venezuela, Brazil, Peru and Ecuador.
• Canada and Colombia enjoy a dynamic and increasingly diversified bilateral commercial relationship, facilitated by the 2011 Canada-Colombia Free Trade Agreement.
• Double taxation Convention between Canada and Colombia.

Upcoming projects and events

• October 19th-20th: 1st Hydrogen and Energy Efficiency Congress, Cartagena, Colombia
• October 24th-26th: Oil & Gas Summit, Cartagena, Colombia
• March 2024: Colombia Genera
• April 2024: International Hydrogen Congress

Summary

Given its geographic and economic conditions, the Colombian market is ideal for business development in energy transition and decarbonization. Colombia is committed to achieving a 51% reduction in greenhouse gases (GHG) by 2030 and carbon neutrality by 2050. Colombian companies are mostly small to medium sized and interested in acquiring technical and technological capacities.

Canadian companies can be successful in the market by partnering with local companies and by bringing new technologies relating to the decarbonization of the oil and gas sector. Carbon capture, utilization, and storage (CCUS) and hydrogen are areas where Canada can become the partner of choice for Colombia.

For more information on energy transition in the Colombian market please contact bogotatd@international.gc.ca or sandra.gonzalez@international.gc.ca