Through the national gas pipeline network, we deliver natural gas to the main residential and industrial consumption centers of the country. It is estimated that by the year 2010 more than four and a half million families will be benefiting from the use of natural gas. The natural gas masification plan looks to reduce the consumption of wood and timber from trees. Another beneficial aspect is the substitution of electricity, which is more expensive than gas.

What is the national gas pipeline network?

This network consists of a system of three main gas pipelines which connect regional branches. The latter transports gas to municipalities. Thus, the gas is carried to homes and industries through household distribution networks.

TGI S.A. E.S.P., through its own network or that contracted for this purpose with the private sector, handles the central system of pipelines and distribution subsystems to the municipalities.

What is the extension of the system?

The trunk pipelines and regional (branch) TGI network have a total length of 3,233 km. This does not take into account the domiciliary network for distribution in the municipalities. The current capacity of the transport system is 150 mmcf/ d in the Ballenas - - Barrancabermeja pipeline and 200 mmcf / d from Barrancabermeja to the rest of the system, but the amount that is transported depends on the actual demand.

Who funds the national network of pipelines?

Part of the network was built using existing pipelines carrying crude oil, which through a process of conversion, can now transport natural gas. Another part was built directly by Ecopetrol, and therefore one as the other were transferred to Ecogás in 1997. In addition, three (3) of the main gas pipeline and its branches were built and financed by private the industry under the BOMT system (Build Operate Maintain and Transfer). Later in 2007 these pipelines were ceded to TGI.

The BOMT is a widely used mechanism for the development of infrastructure projects through which the private sector builds, owns, operates and maintains an active during a certain period at the end of which the property is transferred to a state entity. The system involves several public and state agencies, private companies, investors, banks.

The loans are usually negotiated by the contractor, who is responsible for the timely payment. The owner-contractor operating the asset for a long time, between 10 and 20 years, and receives a regular payment that includes a user fee for the use of the service, the selling price of the product obtained, and a rental fee. Additionally, the payment should be sufficient to cover financial interest and operating costs amortize investment capital, allowing a profit margin attractive enough.

Steps to carry out the project

Identification of the specific need.

Selection of the contractor, consisting of several private construction companies, equipment suppliers and plant operators.

Attractive project terms for the contractor and the banks that fund the investment

The host country must have legal, economic and political stability. It is important to demonstrate the commercial viability of the project.

The partnerships are held between the contractor and the state entity.

The private sector builds the asset; it uses its capital or obtains financing from banks.

The BOMT system offers advantages to the host country:

Allows the development of infrastructure projects of national interest.

It promotes technology transfer.

It promotes private investment in the long term.

Avoids increase in the public debt to finance projects.