Colombia Oil and Gas Downstream Market - Growth, Trends, and Forecasts (2020-2025)

The Colombia oil and gas downstream market is expected to grow at a CAGR of less than 1.27% during the forecast period of 2020-2025. Factors such as increasing demand for natural gas and rising production of oil in the country are expected to boost the demand for the Colombia oil and gas downstream market during the forecast period. However, refineries were built initially to process light, sweet crude oil from fields such as Cusiana and Cupaigua. Colombia's increasingly heavy crude oil production has presented challenges to the refining and midstream sectors.

• Refineries are expected to dominate the market, due to higher installed capacity in the country.
• Colombia's government-owned company is expected to invest in the exploration and production of Colombia's oil and gas fields. It is likely that the investment would increase production and create an opportunity for cheaper oil and gas for the refineries.
• As little investment is expected into the oil and gas downstream sector in the forecast period consumption for natural gas and oil is expected to be the main driver of the market.

Key Market Trends

Oil Refining Capacity to Witness Growth

• In Colombia, the refining capacity was registered to be 421 thousand barrels daily (kb/d), in 2018. The refinery throughput increased considerably by 7.6% to 382 kb/d, in 2018 from 355 kb/d in 2017 .
• Natural gas production in the country increased, by 4.6%, year on year, from 10.6 Mtoe, in 2017 to 11.1 Mtoe, in 2018. Oil production in the country increased, by 1.4%, year on year from 45.0 Mtoe, in 2017 to 45.6 Mtoe, in 2018.
• Colombia's Barrancabermeja refinery and the Cartagena refinery together account for effectively all domestic fuel production.
• The 100,000 b/d Sebastopol project has been put on hold because of a lack of financial support, in 2019. There is the little expected scope of expansions to Colombia's refining system, and any growth is expected to come prominently from improved refinery utilization.
• Colombia's refining capacity is expected to grow slightly in the forecast period due to an increase in oil production in the country and increasing investment.

Consumption for Natural Gas to Drive the Market

• Colombia's main oil blend is the Castilla Blend, with API gravity of 18.8, a heavier and sour (high sulfur 1.97%) crude oil. The oil is of heavier quality which causes problems in the refining of crude oil.
• Natural gas imported by Colombia increased by 54.2%, year on year, from 0.06 million tons oil equivalent (Mtoe), in 2016 to 0.22 Mtoe, in 2018 primarily due to increasing demand for natural gas in the country.
• Natural Gas consumption in the country increased, by 7.1%, from 10.5 Mtoe, in 2017 to 11.2, in 2018. Oil consumption reduced 0.7% from 16.5 million tons of oil equivalent (Mtoe) in 2017 to 16.6 Mtoe in 2018. The increase in demand for oil and gas may boost the growth in the downstream sector.
• Hence, the oil and gas downstream market is expected to grow slightly in the forecast period due to an increase in the consumption of natural gas.

Competitive Landscape

The Colombia oil and gas downstream market is moderately consolidated. The major companies include Exxon Mobil Corporation, Ecopetrol S.A., Fluor Corporation, Chevron Corporation, and Shell Colombia S.A.

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