Mentioned:
There’s a natural gas opportunity forming in Colombia. And a publicly traded company in Canada is aiming to become a first mover.
What’s happening:
- Natural gas company NG Energy (TSXV: GASX) has raised $30M CAD in a new financing round
Why it matters:
- NG Energy is one of the first publicly traded companies focused on becoming a premier producer of natural gas in Colombia, which has extra significance given the continual decline of Colombia’s major natural gas fields over the past decade
By the numbers:
- Natural gas in Colombia generates approximately $3B USD in yearly revenue
- Colombia’s natural gas production has been declining by approximately 6% annually
- Australian financial giant Macquarie Group (ASX: MQG) previously committed $100M USD to funding NG Energy through a credit and guarantee agreement
Going deeper:
- Colombia is geographically located in an ideal area of the world for natural gas exportation, with easy access to Asia, Europe and Central America
- NG Energy’s flagship development gas field SINU-9 is located in the Lower Magdalena Basin which is adjacent to the largest independent gas provider in all of Colombia and has been fully permitted
The intrigue:
- While natural gas has become more relevant due to its reduced environmental impact compared to other fossil fuels, there has also been an acceleration in low carbon fuels and renewable natural gas that has been making waves in the public markets
