Will there be adjustments in the renewable energy policy?
No, and on the contrary it is to continue with the execution. Between the two energy auctions the country was left with 14 assigned projects, nine wind and five solar. The epicenter in the renewable electricity generation matrix will be La Guajira. There is a pipeline of clean source projects, since in addition to the 2,500 megawatts (Mw) that were awarded at auctions, there are about 8,000 Mw that already have a connection concept approved by the Upme.
How will sustainable reactivation synchronize with mining and oil tasks?
In the mining sector it is to give all the viability and support to large-scale projects, which are with the latest technology and which comply with all environmental standards. The matrix will be diversified so as not to be so dependent on coal, and to emphasize metal production. In the oil operation, the focus will be on natural gas as there is a concern about reserves. The task will be to increase the remnants with local production in the medium and long term. In these two sectors, and in the electricity sector, we have 35 priority projects under development totaling $ 37 billion.
How will you streamline mining tasks?
We will focus on taking the main mining projects forward. The Buritic (Antioquia) gold complex, which will produce close to eight million tons of gold, is an entry into operation, which is an increase of 20% compared to the current extraction. It will also be sought that in 2021 the assembly of Gramalote (Antioquia) begins. Two initiatives are pending due to environmental procedures: gold in Soto Norte (Santander) and Quebradona (Antioquia)
Why is the Quebradona project important to the country?
This mine represents a great opportunity for the country in the area of mining diversification. What we seek is that this industrial complex in its assembly and operation follows all environmental standards. So there is no denying its development. The project is in a key phase, which is the Environmental Impact Study (EIA), which has already been filed with the environmental authority and is under review. And the Ministry of Mines of the Antioquia Government, as a mining authority, is currently analyzing the Works and Works Plan (PTO). In the course of this semester the corresponding evaluations will be given and if the requirements are met the project must go ahead.
How will mining formalization policies and programs be strengthened?
The goal is to cover with this policy about 27,000 miners who are not formalized. The National Development Plan (PND) opened the door to give a differential approach to mining. There are 110,000 subsistence miners in the country who will be accompanied with technical assistance to ensure that they have the proper tools so that they can work in a formal way.
How will the oil task be made more dynamic?
To date, 31 contracts have been signed for the development of oil blocks, six of them offshore, with contractual commitments in exploration totaling US $ 2 billion. Shell and Noble Energy are the first to begin these tasks in the waters of the Caribbean Sea at the end of this year or the beginning of next. The great opportunity is in the capitals of the north coast to become a hub of services and oil goods for offshore exploration. And on the coast, 25 agreements have already been signed with investment commitments in the exploratory phase for US $ 950 million. The idea is that they start in the shortest possible time.
How will the supply of liquid fuels supported by imports and storage be guaranteed?
That will largely depend on the crude oil production itself, since 50% is consumed by the country. The other 50% is exported. In gasoline, there is self-sufficiency. And only a percentage of diesel is imported. In the medium term, with current consumption, supply is controlled. Fuel quality will be improved, not only in the matter of particulate matter, but also in octane number.
How will the fracking pilots be energized to validate the potential in hydrocarbons and the real impacts of the technique?
In the coming weeks, the entire regulatory framework should be ready. Last February a public policy framework decree on its development was issued. On the side of the Mines and Energy portfolio, the technical resolution with its respective regulations was published for comments. The Ministry of the Environment also published the environmental terms of reference for comments, because a special environmental license will be issued for those pilots. The Ministry of the Interior will draw up for comments a norm with the guidelines for relations with the territory. And finally, the ANH also published for comment an Agreement that defines the contractual issues.
How to recover the competitiveness of the oil sector on issues such as pipeline rates, prior consultation, and environmental licensing?
In the last two, there is a concern that these processes should be more expeditious. Due to the pandemic, the prior consultation must be moved to some schemes to carry them out in a blended manner.
In pipeline rates, the methodology is reviewed every four years. The last one was in the second quarter of 2019. The regulation allows that before the government unilaterally fix prices, there will be a bilateral negotiation phase, but at the beginning of this there was much skepticism on the part of the senders.
In the end, agreements were reached on 78% of the journeys based on a lower rate than that prevailing at that time. But with the collapse in crude oil prices, it did not allow transportation operating costs to be viable. New agreements were made to make the operation more flexible. For this reason, there are no plans at this time to intervene in pipeline transport rates.